Gulf Economies Face Significant Contraction Amid Regional Conflict

• Gulf economies are projected to shrink 4.8% this year, nearly matching the impact of the COVID-19 pandemic.
• Kuwait's GDP is estimated to contract by 16.7% in 2026, followed by Iraq (16%), Qatar (15.6%), and Bahrain (11.3%).
• The conflict has disrupted energy production, shipping, tourism, trade, and investor confidence in the region.
• Non-oil economic activity is declining in four Gulf countries, highlighting the broad impact of the conflict.
• The International Monetary Fund warns that the conflict has severely affected multiple sectors in the Gulf region.