Baghdad:The International Monetary Fund (IMF) has confirmed that the region’s economic output is expected to contract by 1.3% due to the ongoing impacts of the war.

According to National Iraqi News Agency, the IMF highlighted in its statement that the war’s effects on energy, shipping, and trade are contributing to an “extraordinary level of uncertainty” impacting the economic outlook.

The IMF further noted that any additional disruptions to energy production or trade routes could result in higher energy prices and further weaken economic growth.