Gulf economies to carry war scars for years, IMF o...

Summary

• Gulf economies are unlikely to regain their pre-war growth path any time soon, the IMF’s regional chief said on Thursday, as Saudi-Houthi fighting went on.
• The figures show how deeply the war has shaken Gulf economies that long relied on steady energy exports.
• A day earlier, IMF chief Kristalina Georgieva warned that the attacks on Saudi Arabia could hurt people “everywhere.”Wider fallout for Gulf economiesThe damage could spread well beyond oil fields.

AI Generated Summary

Gulf economies are unlikely to regain their pre-war growth path any time soon, the IMF’s regional chief said on Thursday, as Saudi-Houthi fighting went on.

Jihad Azour, who runs the fund’s Middle East and Central Asia department, spoke to reporters in Bangkok. “We will not go back to the pre-war trajectory in the medium term,” he said.

He explained that the conflict would leave lasting scars on several industries and damage infrastructure. Governments, he added, would also need to spend more to become resilient.

IMF forecasts contraction for Gulf economies

On Tuesday, the International Monetary Fund published forecasts that show the wider region shrinking. It now expects output across the Middle East and Central Asia, which face direct exposure to the Iran war, to fall 0.3% in 2026.