IMF slashes Gulf growth outlook over prolonged Hormuz shutdown
The IMF has lowered its 2026 projections for Gulf nations because the Strait of Hormuz has stayed closed for an extended period.
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What happened
The International Monetary Fund cut its 2026 growth forecasts for Gulf economies, citing the prolonged closure of the Strait of Hormuz. It also pushed back its expected timing for the strait's reopening. The Fund warned that resilience in the global economy is waning.
Why it matters
The Fund's warning points to a weakening global economy. The strait's continued closure is the reason it gives for the lower Gulf forecasts.
Timeline
- Oct 12, 10:00 PM ET: The IMF cut its 2026 growth forecasts for Gulf economies due to the prolonged closure of the Strait of Hormuz.
- Oct 12, 10:00 PM ET: The Fund pushed back its forecast for the strait's reopening and warned that global economic resilience is waning.
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