IMF Warns Middle East Economies to Contract 1.3% in 2026 on War, Shipping Disruptions

The IMF projects a 1.3% contraction for Middle East, North Africa, and Pakistan economies in 2026, citing continued war, energy disruptions, and shipping issues. It expects a rebound to 6.6% growth in 2027, but warns of reserve depletion and rising price pressures. The forecast underscores the regional economic toll of ongoing conflicts, though the specific war and countries affected are not detailed in the source.