The IMF lowers its forecast for the Iraqi economy, predicting a 6.8% contraction in 2026.
The IMF lowers its forecast for the Iraqi economy, predicting a 6.8% contraction in 2026.
2026-06-04
Shafaq News – Baghdad
The International Monetary Fund’s April 2026 Regional Economic Outlook report showed a reduction in the forecast for Iraq’s economic growth this year, predicting a contraction of the country’s real GDP by 6.8%, compared to a slight decline of 0.4% in 2025.
According to the real GDP growth table included in the report, which was reviewed by Shafaq News Agency, the Fund expects the Iraqi economy to experience a strong recovery during 2027, recording growth of 11.3%, before stabilizing at 3.4% in 2030, and 3.5% in 2031.
The report noted that Iraq’s outlook has been revised sharply since October 2025, with growth forecasts for 2026 revised down by 10.4 percentage points, one of the largest negative revisions among oil-producing countries in the Middle East and North Africa region.
Iraq was among the group of oil-exporting countries outside the Gulf Cooperation Council, whose economies the IMF predicted would shrink by 3.1% in 2026, before returning to positive growth of 4.8% in 2027.
The IMF report concluded that the Middle East and North Africa region as a whole is expected to grow by 1.1% in 2026, rising to 4.8% in 2027, amid the continued effects of energy market volatility and regional geopolitical and economic tensions.
shafaq.com
