The International Monetary Fund (IMF) has released its April 2026 Regional Economic Outlook for the Middle East and Central Asia, warning of a challenging economic environment. The report, presented by Jihad Azour, Director of the IMF's Middle East and Central Asia Department, projects a slowdown in regional growth compared to previous forecasts. This is attributed to persistent high inflation, tighter global financial conditions, and ongoing geopolitical tensions.
According to the IMF's verified data, economic growth in the region is expected to decelerate to 2.7% in 2026, down from an estimated 3.2% in 2025. The outlook highlights significant disparities between oil-exporting and oil-importing countries, with the former facing pressures from volatile energy prices. The report emphasizes that inflation, while easing, remains above target in many countries, continuing to strain household budgets.
Jihad Azour stated that policymakers must prioritize anchoring inflation expectations and rebuilding fiscal buffers. The IMF advises continued efforts to diversify economies and implement structural reforms to boost private-sector-led growth and create jobs. The institution notes that these challenges are compounded by the need for increased spending on climate adaptation and digital transformation across the region.
