IMF: War in Gaza has consequences on MENA region

KUWAIT, Jan 10 (KUNA) -- The International Monetary Fund (IMF) said on Wednesday that the war in Gaza caused immense human suffering, which will have consequences for the broader region and add to the already high outlook uncertainty.

This came in a press release from the IMF-Middle East Center for Economics and Finance (CEF) in Kuwait, co-organized with the Arab Fund for Economic and Social Development (AFESD) on Navigating Economic Challenges in the MENA Region.
Jihad Azour, keynote speaker and Director of IMF's Middle East and Central Asia Department, highlighted that where the economic impact of the conflict is acute or risks are elevated, prudent crisis management and precautionary policies will be critical in the near term.
He stressed that MENA countries, especially those with already diminishing policy space and significant structural challenges, should not lose sight of the important reform and resilience agenda, adding that across the MENA region, the combined effects of global headwinds, domestic challenges, and geopolitical risks are weighing on economic momentum.
"Undoubtedly, the crisis will reshape the region's future. This crisis could inaugurate an era of high uncertainty for so many countries if not properly addressed and absent a lasting ceasefire, even if the conflict remains contained," Azour said.
He underlined the strong partnership between the IMF and Arab countries, highlighting IMF's continued efforts to help countries mitigate the impact of adverse shocks and spillovers, stressing that the IMF stands ready to step up needed support through policy advice, technical assistance, and financing to countries in the region. (end) fnk.ao.