The International Monetary Fund (IMF) expects that it may need to extend up to $50 billion in immediate financial aid to nations impacted by the war in the Middle East, as stated by its managing director on Thursday.
The Managing Director of the IMF, Kristalina Georgieva stated, “Given the spillovers of the Middle East war, we expect near-term demand for IMF balance-of-payments support to rise to somewhere between $20 billion and $50 billion, with the lower bound prevailing if the ceasefire holds.”
She further noted that food insecurity, resulting from disruptions in transport and supply chains due to the conflict, is projected to impact at least 45 million individuals.
Middle East war puts financial strain on Gulf countries
The World Bank reported that the Middle East, which has experienced retaliatory strikes from Iran affecting various Gulf nations and Israeli assaults in Lebanon, is facing “a significant and immediate economic impact” as a result of the war.
Excluding Iran, the overall economic growth in the region is expected to decrease to merely 1.8 percent in 2026, down from four percent the previous year, marking a reduction of 2.4 percentage points from estimates prior to the conflict, according to the Bank.
Additionally, the IMF is expected to adjust its forecast for global headline inflation upwards, influenced by the oil price and supply chain disruptions linked to the Middle East war.
On Wednesday, the leaders of the IMF, World Bank, and World Food Programme (WFP) convened in Washington to discuss the impact on the Middle East economy and food security after the conflict.
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