From Boom to Bust?
The IMF now predicts Iraq’s economy will SHRINK by 1.5% in 2025, slashing its earlier forecast of +4.1% growth.
Falling oil prices + stalled reforms = looming crisis.
Can Iraq turn it around? 
is.gd/zNhyv2
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The International Monetary Fund (IMF) has revised its outlook for Iraq's economy, projecting a contraction of 1.5% in 2025—a significant downgrade from the previous forecast of 4.1% growth.
This downturn is attributed to declining oil prices and reduced global demand. Given that oil accounts for over 90% of Iraq's state revenue, the country's economy remains highly vulnerable to fluctuations in the oil market. Brent crude prices have recently fallen to a four-year low, exacerbated by increased production from OPEC+ and global trade tensions.
The IMF estimates that Iraq requires oil prices to average $92 per barrel to meet its budgetary needs, yet current prices are significantly lower, posing challenges to fiscal stability. شفق نيوز
In response to these economic challenges, the IMF emphasizes the need for Iraq to implement sound macroeconomic policies and structural reforms to ensure fiscal and debt sustainability. Recommendations include controlling the public wage bill, phasing out mandatory hiring policies, mobilizing non-oil revenues, and better targeting social assistance.
