The Middle East war has created an “unprecedented shock” for the region’s economies with no guarantee of a quick recovery, a senior International Monetary Fund (IMF) official has told AFP.
Five of the Gulf’s eight oil- and gas-producing countries face a contraction this year, the Fund has said in a regional report. Growth in the others — Saudi Arabia, the United Arab Emirates and Oman — will slow but remain in positive territory, it adds.
Predictions of a rebound next year hinge on how the conflict ends, Jihad Azour, IMF chief for the Middle East and Central Asia, has said in an interview.
Iran’s retaliatory attacks on energy infrastructure and the de facto closure of the key Strait of Hormuz shipping lane have put a stranglehold on Gulf exports, sending oil prices soaring.
“It’s an unprecedented shock for the region,” Azour said in a phone interview of the war.
“There’s uncertainty over how long the crisis will last and how it will end,” he adds.
An agreement without assurances about the future “will make it hard to ensure confidence”.
