IMF outlook forecasts Middle East and Central Asia economic contraction in 2026
The IMF’s latest outlook projects a 0.3% regional decline, reversing its April forecast for growth, according to Al Jazeera.
The International Monetary Fund’s latest outlook forecasts that the Middle East and Central Asia economy will contract by 0.3% in 2026, Al Jazeera reported on 13 October. The forecast reverses the IMF’s April projection of 1.9% growth, with the downgrade attributed to the fallout from the US-Israel war on Iran and disruption to shipping through the Strait of Hormuz.
Al Jazeera reported projected GDP declines of 16.7% for Kuwait, 16% for Iraq, 15.6% for Qatar, 11.3% for Bahrain and 7.6% for Iran. Those figures are forecasts for 2026, rather than measured economic results.
The IMF confirmed publication of its latest World Economic Outlook at its annual meetings in Bangkok on 13 October. The retrieved IMF release did not display the regional or country estimates, which are reported here with attribution to Al Jazeera.
Sources and context
- Middle East and Central Asia’s economy to shrink in 2026 amid war, IMF saysAl Jazeera
- IMF / World Economic Outlook Annual Meetings, 2026International Monetary Fund
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