Middle East and Central Asia’s economy to shrink in 2026 amid war, IMF says

Iraq, Bahrain, Kuwait and Qatar face double-digit declines in GDP amid the fallout from the US-Israel war on Iran.Published On 13 Oct 202613 Oct 2026The economy of the Middle East and Central Asia is set to shrink in 2026 amid the fallout of the US-Israel war on Iran, with countries such as Kuwait and Qatar facing double-digit contractions, according to the International Monetary Fund (IMF).The region’s gross domestic product (GDP) is forecast to contract by 0.3 percent this year, a sharp downgrade from the 1.9 percent expansion projected in April, the IMF said in its latest economic outlook on Tuesday.Recommended Stories list of 4 itemslist 1 of 4Ronaldo waves Saudi-flag scarf after match interrupted by missile alertlist 2 of 4AI could self-replicate on home devices within ‘months’, Anthropic sayslist 3 of 4Man dies after fall from Six Flags rollercoaster in Georgialist 4 of 4More than 100 foreign trekkers stranded by floods in Nepal’s Gorkha regionend of listThe IMF cited the prolonged disruption to shipping in the Strait of Hormuz, a conduit for one-fifth of global oil supplies in peacetime, for the downgraded outlook.Kuwait, Iraq and Qatar are likely to experience the most seve...