The International Monetary Fund (IMF) has revised its economic forecasts to account for the ongoing conflict in the Middle East, warning that several energy-producing countries could face sharp economic declines in 2026.
In its latest World Economic Outlook, the IMF projected that Bahrain, Iraq, Kuwait and Qatar could experience double-digit economic contractions in 2026 because of disruptions to energy production and transportation.
However, the IMF expects these economies to rebound strongly in 2027, with double-digit growth as oil and gas production, exports and transportation routes return to normal. Economy
The outlook highlights the significant impact that regional conflict can have on energy-dependent economies, particularly when disruptions affect production, exports and the movement of commodities.
