Expert determines the reasons for the expectations of economic growth in Iraq reaching more than 5% in 2026

  The economist, Qusay Safwan, identified the reasons for the expectations of reaching economic growth in Iraq to more than 5% in 2026.

Safwan {Euphrates News} said: “The expectations of the International Monetary Fund went towards the external outlook of the Iraqi economy in light of the success of the Sudanese government of Mohammed Shiaa by reducing foreign debts from 20 million dollars to 9 million dollars, which gives a sloom to the situation of the Iraqi economy for the coming years, considering that the benefits of those debts will be low.”
He added, 

“There are also projects initiated by the Sudanese government at the level of stopping the burning of gas and the associated gas investment in the supply of electricity in the sense of reducing cash outflows to reduce the import of electricity and gas, as well as completing the port of Al-Faw in mid-2025 and entering the stage of operating experiments to link it with the European Union.”

“This means adding non-oil revenues and these indicators indicate a positive outlook that can contribute to the reclassification of Iraq’s credit from the level of C3 Plus to the level of PEMinas,” Safwan continued, noting “the possibility of increasing Iraq’s GDP to 5% if initiatives are added by the Central Bank in the payment of small and medium enterprises and is currently at a rate of 270 billion dollars annually.”

He added, “Iraq is currently considered a partner with the International Finance Corporation as it is trying to rebuild Iraqi airports and there are two billion dollars that will be pumped to develop and expand Baghdad International Airport, and this indicates that Iraq’s ability to operate these amounts and return them to lenders.”

Safwan stressed that “the process of developing the energy sector at the level of gas and oil through licensing rounds will contribute to increasing Iraq’s future revenues, as it looks at 6 million barrels for export purposes, meaning that there is a possibility to increase the spending capacity of oil revenues on investment projects,” noting “the importance of turning understandings into a studied reality in the field of foreign investment.”
The World Bank predicted that Iraq will achieve economic growth of more than 5% in 2026, noting that the recovery in the oil sector in 2025 will contribute significantly to boosting this growth.
In its report, the bank reported that Iraq’s economic growth for 2022 was 7.6%, and in 2023 it fell to -2.9.
The report also predicted that Iraq’s economic growth in 2024 will decline to -0.3%, and achieve growth in 2025 to 3.8%, and in 2026 to reach 5.3%.
The report noted that non-GCC oil exporting countries, such as Iraq and Algeria, will benefit from the expected recovery in the oil sector in 2025, which will help boost economic growth in these countries.

Wafaa Al-Fatlawi

https://alforatnews.iq/news/خبير-يحدد-أسباب-توقعات-وصول-النمو-الاقتصادي-بالعراق-لأكثر-من-5-في-2026