IMF warns gulf economies face long recovery after ...

Summary

• The International Monetary Fund (IMF) has warned that Gulf economies may take years to recover from the economic damage caused by the Iran war, as escalating fighting involving Saudi Arabia and Yemen’s Houthis continues to disrupt energy supplies, damage infrastructure and weaken regional growth.
• Maritime energy traffic remains disrupted, adding pressure to global energy markets and raising concerns about the wider economic consequences of a prolonged war.
• On Wednesday, IMF Managing Director Kristalina Georgieva warned that continued attacks on Saudi Arabia could have consequences far beyond the Middle East, affecting people and economies around the world.

AI Generated Summary

The International Monetary Fund (IMF) has warned that Gulf economies may take years to recover from the economic damage caused by the Iran war, as escalating fighting involving Saudi Arabia and Yemen’s Houthis continues to disrupt energy supplies, damage infrastructure and weaken regional growth.

IMF Middle East and Central Asia Director Jihad Azour said on Thursday that although energy-rich economies were expected to recover eventually, they were unlikely to return to their pre-war growth trajectory in the medium term.

“We will not go back to the pre-war trajectory in the medium term because this shock will have a scarring impact on various sectors,” Azour told reporters.