IMF Sounds Alarm Bell Over 'Economic Collapse': Iraq Needs Reform, Not Slogans
Friday, July 11, 2025 | Economic Number of readings: 90 Baghdad/ NINA / The International Monetary Fund (IMF) warned of a dangerous financial path that threatens economic stability in Iraq, given its excessive reliance on oil revenues and rapid expansion in current expenditures, most notably salaries and pensions, amid a near-total stagnation in the non-oil sectors. This places the country at a critical economic and political crossroads.
In a detailed report, the IMF indicated that the growth rate of the non-oil sector in Iraq declined sharply from 13.8% in 2023 to an estimated 2.5% in 2024, indicating a gradual contraction of real economic activity outside of oil.
According to the report, the fiscal deficit is expected to reach 7.5% of GDP in 2025, before jumping to 9.2% in 2026, driven by lower revenues and higher expenditures, particularly in the salaries and pensions file, which drain most of the budget's resources, in the absence of any corresponding production. /End https://ninanews.com/Website/News/Details?key=1240196