IMF forecasts 4.8% contraction for Gulf economies as Iran war hits exports

Gulf economies are set to shrink 4.8 per cent this year as the Iran war disrupts energy exports, before rebounding 9.1 per cent in 2027, the International Monetary Fund said today. The IMF slashed its 2026 growth forecast for the six-member Gulf Co-operation Council by 6.8 percentage points from April, when it projected 2 per cent growth. Oil-importing countries have faced their "most severe shock" from the conflict, Jihad Azour, director of the IMF's Middle East and Central Asia department, told reporters in Dubai.