IMF says war will slow Middle East economies

The International Monetary Fund has said that the energy-rich economies of the Middle East will not return to their pre-war state in the medium term due to the effects of the war. IMF regional director Jihad Azour told reporters on Thursday that the war would cause long-term damage across various sectors, disrupt infrastructure, and require additional spending to manage risks.

According to the Fund, it will take time for these economies to recover. The IMF has projected that Gulf economies will contract. The war that began in Iran has spread to Saudi Arabia and Yemen, with fighting ongoing between Saudi Arabia and Yemen's Houthi rebels.

The Fund issued this warning as the war has disrupted energy shipments through maritime routes, raising concerns about global energy supplies. The warning came this week as officials and experts gathered in Bangkok.