IMF sees 1.3% contraction in Middle East, North Africa and Pakistan in 2026

DUBAI, Oct 22 (Reuters) The IMF on Thursday forecast a sharp drop in economic output in the Middle East, North Africa and Pakistan this year due to the US-Israeli-led war against ​Iran, followed by a rebound to 6.6% growth in 2027, ‌while warning that further energy production disruptions could worsen the outlook. The International Monetary Fund said the region s output was expected to contract by 1.3% as a result of the war s impact on energy production, shipping, tourism, trade and confidence. Economic output ‌would ​increase sharply in 2027, but output in ⁠those economies would generally stay ⁠below pre-war projections. The war s impact had been substantial, but uneven, with oil-exporting economies directly affected by disruptions to energy production and shipping hit harder, and oil importers proving to be more resilient, the ​IMF said in its regional outlook released Thursday in Dubai. The IMF said its baseline assumed that the conflict would abate in early ⁠2027 and that trade