IMF Warns Attacks on Saudi Arabia May Ripple Across Global Economies
The head of the International Monetary Fund said strikes on Saudi Arabia could affect economies worldwide because of the kingdom's central role in energy and trade. She spoke at the IMF-World Bank annual meetings in Bangkok as shipping and energy flows face pressure. The IMF now expects Middle East and Central Asia economies to shrink by 0.3% in 2026 before rebounding 6.3% in 2027, while Saudi growth forecasts were revised upward for 2027 and its 2026 contraction estimate was reduced.
Kristalina Georgieva, managing director of the International Monetary Fund, issued the warning in Bangkok during the IMF-World Bank annual meetings. She said Saudi Arabia's economic weight means disruptions there can reach beyond the region.
The IMF's latest projections put Middle East and Central Asia output down 0.3% in 2026, then up 6.3% in 2027. For Saudi Arabia, the fund raised its 2027 growth estimate to 7.9%, while trimming its 2026 contraction forecast to 3.3%. Riyadh's finance ministry expects 12.8% growth in 2027.
If energy and shipping flows remain strained, households and firms in oil- and gas-importing economies could face higher fuel, transport, and goods costs. Saudi citizens and regional workers may feel effects through slower trade and investment, while recovery prospects could ease pressures if security improves. Global markets may also react to uncertainty, though the IMF's forecasts suggest the shock could be temporary.