Growth is projected to rebound to 6.6% in 2027, although the IMF warns the recovery will be uneven. Jihad Azour, the director for the Middle East and Central Asia, stated that while alternative trade routes and pre-war surpluses initially limited the damage caused by the closure of the Strait of Hormuz, those finite buffers are now being exhausted.
Tuesday, October 20, 2026
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IMF Forecasts 1.3% Middle East and Pakistan Shrinkage in 2026
Global Markets6 days ago
Maritime instability and energy supply shocks are creating severe economic headwinds across several developing nations, the International Monetary Fund reported on Thursday. The organization forecasts that the Middle East, North Africa and Pakistan region will contract 1.3% in 2026, a reversal from the 3.3% growth recorded in 2025, citing prolonged conflict and disruptions to critical infrastructure and shipping lanes as the primary risks.
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