IMF forecasts 1.3% contraction in Pakistan, 6.6% growth in 2027
The IMF projects a 1.3% economic contraction for Pakistan and the broader Middle East/North Africa region in 2026 due to regional conflict. A rebound to 6.6% growth is expected in 2027, provided that energy production and trade routes stabilize.
Why it matters
The forecast highlights the severe economic impact of regional geopolitical instability on energy markets and national fiscal health.
--> Home Business IMF forecasts 1.3% contraction in Pakistan, 6.6% growth in 2027 Says outlook remains clouded by 'exceptionally high uncertainty'
facebook --> twitter --> whatsup --> linkded --> email MORE (3) Messenger Whatsapp --> The International Monetary Fund logo is seen during the IMF/World Bank spring meetings in Washington, U.S., April 21, 2017. REUTERS The IMF on Thursday forecast a sharp drop in economic output in the Middle East, North Africa and Pakistan this year due to the US-Israeli-led war against Iran, followed by a rebound to 6.6% growth in 2027, while warning that further energy production disruptions could worsen the outlook.
The International Monetary Fund said the region's output was expected to contract by 1.3% as a result of the war's impact on energy production, shipping, tourism, trade and confidence. Economic output would increase sharply in 2027, but output in those economies would generally stay below pre-war projections.
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