IMF warns Saudi Arabia and Gulf economies may take years to recover from war, Saudi economy projected to shrink 3.3pc
BANGKOK, Oct 15 — The International Monetary Fund expects energy-rich Middle Eastern economies to bounce back, but...
The International Monetary Fund (IMF) has warned that Middle Eastern economies, particularly those in the energy-rich Gulf region, may take several years to recover from the ongoing war, with Saudi Arabia projected to experience a significant economic contraction of 3.3 percent. The IMF's regional director, Jihad Azour, stated that the region will not return to its pre-war trajectory in the medium term due to the lasting impact of the conflict on various sectors and infrastructure.
The IMF's projection, released on Tuesday, indicates that the Middle East and Central Asia region, directly affected by the Iran war, is expected to contract by 0.3 percent in 2026. Saudi Arabia is among the worst affected, highlighting the rare potential recession for the kingdom, which has traditionally benefited from robust energy exports.
The conflict between Saudi Arabia and Yemen's Houthis has intensified recently, with attacks on airports, energy facilities, and Aramco headquarters, raising concerns about the broader implications for global energy supply and economic stability.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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