The International Monetary Fund (IMF) has forecast a sharp drop in economic output in the Middle East, North Africa, and Pakistan this year due to the US-Israel war against Iran, followed by a rebound to 6.6 percent growth in 2027.
In a statement, the IMF said the region’s output was expected to contract by 1.3 percent as a result of the war’s impact on energy production, shipping, tourism, trade, and confidence.
The IMF said its baseline assumed that the conflict would abate in early 2027 and that trade would gradually normalise during the year, but added that the outlook remained clouded by “exceptionally high uncertainty”.
“The main risks derive from further disruption to energy production and trade routes that could drive energy prices higher,” the statement added.
MNA
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