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IMF Warns Middle East War Threatens Economic Stability

The IMF warns that prolonged conflict and supply disruptions pose severe risks to Middle East economies. The region faces a projected economic contraction this year before a rebound.

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Jihad Azour, Director, Middle East and Central Asia Department, IMF, speaks during an IMF briefing on Regional Economic Outlook for Middle East and Central Asia at the IMF/World Bank 2026 Annual Meetings at Queen Sirikit National Convention Center (QSNCC) in Bangkok, Thailand, October 15, 2026. REUTERS/Athit Perawongmetha

Prolonged conflict in the Middle East threatens regional stability, with the IMF projecting a deep contraction of 1.3% for the broader region.
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