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Yeshiva World News · Oct 15, 2026

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The International Monetary Fund forecasts that the combined economies of the Middle East, North Africa and Pakistan will contract by approximately 1.3 percent in 2026 as the Iran war disrupts energy production, international shipping and regional trade. The IMF expects a potential recovery of 6.6 percent in 2027, assuming shipping through the Strait of Hormuz resumes and energy exports gradually recover. Officials warned that continuing infrastructure damage and reduced production capacity remain significant economic risks.

The International Monetary Fund forecasts that the combined economies of the Middle East, North Africa and Pakistan will contract by approximately 1.3 percent in 2026 as the Iran war disrupts energy production, international shipping and regional trade. The IMF expects a potential recovery of 6.6 percent in 2027, assuming shipping through the Strait of Hormuz resumes and energy exports gradually recover. Officials warned that continuing infrastructure damage and reduced production capacity remain significant economic risks.

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