Iraqi Economy Shifts from Losses to Growth
The International Monetary Fund's report for 2027 predicts that the Iraqi economy will achieve the highest Arab growth rate, reaching up to 19%. This reflects a significant rebound associated with the return of oil exports to their previous levels after a sharp decline in 2026. However, the report reveals that this growth does not indicate an improvement in non-oil sectors, as oil revenues fell by 53% during the first seven months of 2026, and total public revenues decreased by 45.7%. The economy remains heavily dependent on oil, which constitutes about 78% of revenues. Experts point out that the weakness of productive sectors such as agriculture and industry, along with poor management and corruption, hinder economic diversification. This makes Iraq vulnerable to any disruptions in oil exports, posing a threat to sustainable growth. The government is working on implementing Vision 2050 to reduce reliance on oil and promote the private sector, but the achievement of these goals faces challenges related to financial restructuring, improving the business environment, and balancing revenues and expenditures.
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