Based on economic, risk, and oil forecasts, Standard & Poor’s sets Iraq’s credit rating.
Based on economic, risk, and oil forecasts, Standard & Poor’s sets Iraq’s credit rating.
2026-02-07 | 01:02
SumerianNews-Economy:
Standard & Poor’s Global Ratings Agency confirmed the rating Iraq The sovereign credit rating for foreign and local currencies is at ‘B-‘ in the long term and at ‘B’ in the short term with a stable outlook.
The rating agency’s decision reflects expectations that reserves Iraq International debt will continue to outpace external public sector debt, helping to mitigate the significant risks stemming from geopolitical uncertainties, a weak institutional framework, and a lack of economic diversification.
Standard & Poor’s noted that Iraq’s regional geopolitical risks remain high due to ongoing tensions between US While military escalation with Iran could increase regional uncertainty, the agency assumes that the United States currently lacks the appetite for direct military intervention.
Iraqi oil production is expected to rise in 2026 as OPEC+ reduces quotas and the Kirkuk-Ceyhan pipeline in northern Iraq resumes exports, which should partially offset lower oil prices. Standard & Poor’s forecasts prices to reach $60 per barrel in 2026 and $65 per barrel during the period 2027-2029.
The agency projects average annual GDP growth of around 2% during the period 2026-2029, following a projected contraction of around 1% in 2025. Iraq’s per capita GDP is relatively low at around $5,800 in 2026, although this figure does not fully account for the size of the country’s informal economy.
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