IMF forecasts 1.3% contraction for Middle East and North Africa in 2026

The IMF forecast a 1.3% contraction in Middle East and North Africa output in 2026 from the war on Iran, with 6.6% growth expected in 2027.

• The IMF, in a report released in Dubai on Thursday, forecast MENAP output to contract 1.3% in 2026 because of the war on Iran.
• The fund expects the region's GDP to grow 6.6% in 2027, assuming the conflict subsides by early that year.
• The IMF warned that further disruptions to energy production and shipping could raise energy prices and weaken growth.
• The fund said oil exporters were hit harder by production and shipping disruptions, while oil importers showed greater resilience.