The International Monetary Fund (IMF) has stated that Gaza, Lebanon, and Sudan will face decades-long recovery challenges due to ongoing conflicts, leading to a downgrade in the region’s growth forecast. The IMF highlighted the lasting economic damage from Israel’s military actions against Hamas and Hezbollah, along with the civil war in Sudan.
The organization has reduced its growth prediction for the Middle East and Central Asia to 2.1 percent for 2024, down by 0.6 percent attributed to these conflicts and declining oil production. The IMF’s Regional Economic Outlook suggests growth could rise to 4.0 percent next year, but significant uncertainty remains, particularly in Lebanon, where estimates indicate a possible contraction of 9.0-10 percent this year due to escalating tensions.
The IMF emphasized that ongoing conflicts, fluctuating commodity prices, and climate-related shocks pose substantial risks to economic stability in the region.
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