IMF expects Iraq’s non-oil economy to continue growing at 3.5% in 2025
IMF expects Iraq’s non-oil economy to continue growing at 3.5% in 2025
2025/03/02
The Iraqi delegation concluded its meetings with the International Monetary Fund in Amman during the period from February 24 to 26, 2025, with the participation of the Minister of Finance, Taif Sami Muhammad, and the Governor of the Central Bank of Iraq. Iraq’s economic performance and prospects for sustainable growth were discussed, amid appreciation for the progress made.
The discussions focused, according to the Finance Ministry statement, a copy of which was received by {Euphrates News}, in which experts from the Ministries of Finance, Planning, Oil, Electricity and the Central Bank participated, on: “Macroeconomic indicators, where a remarkable growth in non-oil GDP was recorded at 5% for the year 2024, driven by the expansion of the agricultural sector and the increase in public spending, with growth expected to continue at 3.5% in 2025.”
The mission confirmed that “these figures reflect an improvement in economic diversification and a reduction in dependence on oil, which enhances the stability of the national economy, in addition to reviewing actual expenditures and expected revenues for the year 2024 and expectations for the year 2025 and how to finance the deficit.”
The statement added, “The meeting also discussed updating the public debt strategy with mechanisms that ensure public financial sustainability and enhance investor confidence in government bonds.”
The IMF stressed “the importance of developing the banking sector to support investments and attract foreign capital, which contributes to creating a more stable financial environment,” affirming “its support for Iraq in developing financial policies by providing advisors and experts to help the Ministry of Finance manage public debt and improve the tax system in line with the requirements of economic growth.”
In the context of enhancing financial stability, it was agreed to “intensify efforts to expand cooperation with foreign correspondent banks, which facilitates foreign trade financing operations, in addition to enhancing the use of the Iraqi dinar in major transactions, which enhances the strength of the national currency.”
The meetings also stressed, according to the statement, “the continued progress in financial and economic reforms, which reflects the Iraqi government’s commitment to achieving financial sustainability that supports development and stimulates investment, in light of an ongoing strategic partnership with the International Monetary Fund.”
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