IMF Forecasts 1.3% Middle East Contraction in 2026 on Iran War Impact

The IMF projects a 1.3% economic contraction for the Middle East, North Africa, and Pakistan in 2026, attributing it to the war on Iran and warning of risks from continued energy production disruptions. A recovery of 6.6% is expected in 2027. This marks a significant downgrade reflecting the regional economic toll of the conflict, with implications for global energy markets and growth.

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