IMF Expects Strong Growth for Middle East Economies
The IMF expects the region's economy to contract this year due to the war, with growth of 6.6% projected for 2027.
Translated by Qiyas from الأنباء — Original source
Despite the economic fallout from the war in the Middle East, the International Monetary Fund (IMF) is betting on a strong recovery for the region’s economies in 2027, following an expected contraction this year. This trajectory reflects the region’s ability to regain momentum as the conflict subsides and energy, shipping, and trade activities gradually return to normal, although realizing this recovery remains contingent on geopolitical developments and the continued flow of energy supplies.
In a recent report, the IMF predicted a sharp decline in economic output in the Middle East and North Africa, as well as in Pakistan, this year due to the war launched by the United States and Israel against Iran, followed by growth of 6.6% in 2027, while warning that forecasts could be revised downward if further disruptions to energy production occur.
The IMF stated that the region’s output is expected to contract by 1.3% as a result of the war’s impact on energy production, shipping, tourism, trade, and confidence. Economic output is expected to rise significantly in 2027; however, output in these economies will generally remain below pre-war projections.
