IMF cuts Mideast, North Africa economic growth forecast to 1.1%

The International Monetary Fund sharply reduced its 2026 growth forecast for the Middle East and North Africa to 1.1% on Tuesday as war chokes Gulf oil and gas exports.

Iran, Iraq and Qatar will be particularly hard-hit, the IMF's World Economic Outlook warned, predicting a 6.1% slide for the Iranian economy. Qatar was tipped to drop 8.6% and Iraq 6.8%.

Growth should rebound next year, as long as energy production and transport are "normalized" over the next few months, the IMF predicted. The region's economies grew 3.2% in 2025, it said.