War Shock Slows Gulf Growth
The war between the US, Israel, and Iran has slowed economic growth in the Gulf region, with the Middle East and North Africa's expected growth falling to 1.1% this year. The International Monetary Fund has downgraded growth forecasts for Gulf Cooperation Council countries to 2% this year, with some economies like Qatar facing a likely contraction of up to 8.6%.
The war between the US, Israel, and Iran has had a significant impact on the Gulf economy. The International Monetary Fund has downgraded growth forecasts for the Middle East and North Africa region to 1.1% this year, a decline of 2.8 percentage points from pre-war estimates. Gulf Cooperation Council countries are expected to see growth decline to 2% this year, with some economies facing contraction. Qatar is expected to contract by up to 8.6% due to its dependence on the gas sector and vulnerability of energy infrastructure. The World Bank has described the situation as carrying a 'significant human and economic cost.' The slowdown is attributed to disruptions in energy supplies, trade, and maritime transport, as well as rising insurance and shipping costs.
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