IMF warns prolonged war and renewed disruptions pose biggest risk to Middle East and Central Asian economies

Reuters, in a report carried by The Straits Times, says the IMF sees prolonged war and renewed disruptions to energy production, shipping routes or critical infrastructure as the biggest risk to Middle East and Central Asian economies. IMF official Jihad Azour said buffers that had contained the energy shock are finite. The fund forecasts a 1.3% contraction in 2026 for the Middle East, North Africa and Pakistan region, followed by an uneven rebound to 6.6% growth in 2027.