Republic of Iraq

Abstract

GDP growth is rebounding after the pandemic. Higher oil prices have strengthened the fiscal and external balances to strong surpluses. However, the lack of an approved budget for 2022 has constrained the utilization of the oil windfall. Growth in the medium-term is projected to be driven by the oil sector. Further delays in forming a government, heightened security tensions, and worsening climate challenges pose significant risks to Iraq’s economic outlook. Key conditions and challenges