The Regional Director of the International Monetary Fund (IMF) stated on Thursday that while the fund expects the economies of the Middle East to recover, this will not happen in the short term.
IMF Regional Director Jihad Azur told journalists that a return to the pre-war trajectory in the medium term is unlikely, as this shock will negatively affect various sectors, disrupt the operation of several infrastructure facilities, and require additional spending to increase resilience.
This warning came amid meetings of officials and experts in Bangkok, where global economic problems were discussed, including persistently high energy costs.
On Tuesday, the IMF published forecasts indicating that the Middle East and Central Asia region, which is directly affected by the war in Iran, is projected to contract by 0.3 percent in 2026.
Saudi Arabia was among the hardest-hit countries; its economy is forecast to shrink by 3.3 percent, which is a rare recession for the kingdom, which has long been supported by strong energy exports.
On Wednesday, IMF Chief Cristiana Georgieva warned that ongoing attacks targeting Saudi Arabia could affect people 'everywhere.'