Afghanistan, Oct. 13 -- The International Monetary Fund (IMF) has sharply downgraded its 2026 economic outlook for the Middle East and Central Asia, projecting a 0.3 percent contraction as the war involving the United States, Israel and Iran disrupts energy production and shipping through the Strait of Hormuz.
In its latest World Economic Outlook, released on Tuesday, October 13, the IMF forecast that the regional economy would shrink this year, reversing its earlier growth expectations. The prolonged disruption to the Strait of Hormuz, a critical route for global oil and gas shipments, has intensified pressure on energy exports and regional economic activity.
The economic impact is expected to vary across the region. The IMF projects tha...