IMF: Middle East, Central Asia GDP to shrink in 2026 as US-Israel-Iran war hits oil states

The IMF projects a regional economic contraction for 2026, with Iraq, Bahrain, Kuwait, and Qatar facing double-digit GDP declines, attributing the fallout to the ongoing US-Israel war on Iran. The forecast marks a sharp reversal from prior growth expectations, underscoring the war's economic toll on oil exporters. Uncertainty remains over the war's duration and oil price trajectory, which will determine the severity of the contraction.