Prolonged war, renewed disruptions pose biggest risk to Middle East region, IMF says

The International Monetary Fund (IMF) stated on Thursday that prolonged war in the Middle East and further disruptions to critical infrastructure, shipping routes, or energy production represent the greatest risks to economies in Central and the Middle East. Speaking at a news conference during annual IMF and World Bank meetings in Bangkok, Jihad Azour, the IMF’s director for the Middle East and Central Asia, noted that the war is delivering a highly uneven economic shock.

According to Investing.com, the IMF forecasts a 1.3% contraction in the Middle East, North Africa, and Pakistan region following 3.3% growth in 2025, with a rebound to 6.6% expected in 2027.

Azour noted that while pre-war surpluses and alternative routes helped contain the energy shock caused by US-Israeli-led attacks on Iran and the subsequent closure of the Strait of Hormuz by Tehran, these buffers are finite. He warned that lower inventories and tighter spare capacity mean renewed disruptions could lead to much larger price adjustments.

The South China Morning Post reported that the regional conflict has increased safety concerns for over 2 million overseas Filipino workers in the Middle East. The outlet noted that recent Houthi strikes on Riyadh’s King Khalid International Airport killed at least 13 people and injured more than 300. Migrant Workers Secretary Hans Leo Cacdac confirmed on Tuesday that seven Filipinos were among those injured in the strikes.

Brief written by urgent.news from Al-Monitor, Investing.com, South China Morning Post — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.