What question did this study set out to answer?

The aim is to outline the policy implications of the economic effects resulting from the conflict in the Middle East.

April 16, 2026MF Policy Paper0 citations

The Managing Director's Global Policy Agenda Spring Meetings 2026

Key Points

The aim is to outline the policy implications of the economic effects resulting from the conflict in the Middle East.
Analyzed economic impact of the Middle East war on global economies.
Assessed vulnerabilities in poorer countries due to these economic disturbances.
Developed policy frameworks to provide agile responses to economic shocks.
Identified the need for diverse economic strategies to mitigate impacts on vulnerable countries.
Stressed the importance of maintaining medium-term priorities despite immediate crises.
Confirmed IMF's readiness to assist with balance of payments financing and advisory support.

Abstract

The world faces the spillovers of a new war. In addition to the human toll, the economic effects of the war in the Middle East are global, and will once again hit the poorest and most vulnerable countries the hardest. This comes at a time when policy space has eroded and international cooperation is weaker. The appropriate policy response depends on how the shock propagates through the domestic economy, calling for pragmatism and agility, backed by credible policy frameworks. The IMF stands ready to deploy all its tools to assist the membership. We will support good policymaking—advising also that this new test must not derail essential medium-term priorities—and provide balance of payments financing where needed.

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