IMF says Middle East, North Africa and Pakistan GDP to contract 1.3pc in 2026

The International Monetary Fund (IMF) on Thursday forecast a sharp drop in economic output in Pakistan, the Middle East and North Africa this year due to the US-Israeli-led war against Iran , followed by a rebound to 6.6 per cent growth in 2027, while warning that further energy production disruptions could worsen the outlook. The IMF said the region’s output was expected to contract by 1.3pc as a result of the war’s impact on energy production, shipping, tourism, trade and confidence. Economic output would increase sharply in 2027, but output in those economies would generally stay below…