Iraq's economy to grow by 4.1% in 2025
According to data revealed by the IMF, the Iraqi economy is expected to grow by 4.1 percent compared to 0.1 percent in 2024, Shafaq News reported.
Libya will have the highest economic growth rate, at 13.7 percent, followed by the UAE at 5.1 percent, Saudi Arabia at 4.6 percent, and Algeria at four percent, according to the IMF.
In early May, the IMF reduced its growth projections for Middle Eastern and North African oil-exporting countries, including Iraq and Saudi Arabia.
The IMF lowered its 2025 projection for the region's oil exporters to 2.3 percent, which was 1.7 percentage points less than the fund's October prediction, according to the Financial Post.
The World Bank expected in mid-June that the Iraqi economy would grow by 1.2 percent in 2025, rebounding from a contraction of -1.5 percent in 2024.
According to a World Bank analysis, Iraq's economic growth is predicted to peak at 4.4 percent in 2026 before falling to 3.1 percent in 2027.
The World Bank Country Director for the Middle East Department, Jean-Christophe Carret, confirmed in March the bank's commitment to helping Iraq meet its development objectives.
With an emphasis on sustainable development, the World Bank places a high priority on strengthening Iraq's capacity to handle economic and development difficulties, according to Carret.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Iraq Business
3 hours ago
- Iraq Business
Iraq Reduces Money Supply
By John Lee. Iraqi currency in circulation fell by 0.6 percent in the first quarter of 2025, according to a statement from the Central Bank of Iraq (CBI). It said money supply fell from IQD 100.5 trillion [$76.7 billion] to IQD 99.9 trillion. The reduction is expected to help contain inflation and maintain price stability. (Source: CBI) Tags: Central Bank of Iraq (CBI), cg, featured, Money Supply
Rudaw Net
7 hours ago
- Rudaw Net
US presses urgent restart of Kurdish oil exports, slams stalemate as ‘unacceptable'
Also in World Trump moves to lift broad sanctions on Syria: White House spox. Three Gorges Dam powers China's growth amid displacement, environmental concerns Kurdish activist honored for anti-racism work in Europe Trump said would consider bombing Iran again A+ A- WASHINGTON DC - The United States is urging the resumption of Kurdish oil exports through the Iraq-Turkey Pipeline, describing its ongoing closure as "unacceptable" due to the economic harm it is causing to both Iraq and the Kurdistan Region, as well as its direct impact on American businesses, a State Department spokesperson told Rudaw on Tuesday. 'It is critical that the Government of Iraq, the Kurdistan Regional Government (KRG), and other involved parties urgently restart the Iraq-Türkiye Pipeline operations,' the spokesperson emphasized, adding that the closure is 'directly harming the business of three American companies. 'This is unacceptable. We have repeatedly urged all parties to resolve their issues and will not accept an indefinite delay,' the spokesperson stressed. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023, following a ruling by a Paris arbitration court that found Turkey had violated a 1973 pipeline agreement by allowing Erbil to export oil without Baghdad's approval. In February, Iraq's parliament amended the federal budget law to include a $16-per-barrel fee to cover production and transportation costs for international oil companies (IOCs) operating in the Kurdistan Region. The amendment also requires Baghdad and Erbil to jointly appoint an international consultancy to audit and assess these costs. If no consensus is reached, the Iraqi cabinet will choose the firm. While the changes were designed to facilitate the resumption of Kurdish oil exports, progress remains stalled. Kurdistan Region Prime Minister Masrour Barzani stated last week that the suspension of exports has cost over $25 billion in lost revenue. In a similar vein, the State Department spokesperson told Rudaw on Tuesday that the Iraq-Turkey pipeline 'provides a critical alternative route for oil to reach global markets,' benefiting the economies of both Iraq and the Kurdistan Region, 'as well as the American companies that operate there." The reopening of the key pipeline stands to benefit Washington, Baghdad and Erbil, the spokesperson asserted, noting that its continued closure 'has done nothing but stifle Iraq's economic development and undermines American business and help increase Iran's influence. 'This issue needs to be resolved, and soon!' the spokesperson concluded. Rudaw learned on Tuesday that a Kurdistan Regional Government (KRG) delegation led by Acting Natural Resources Minister Kamal Mohammed returned to Erbil after three days of talks in Baghdad aimed at resolving long-standing oil disputes. However, negotiations between Erbil and Baghdad have stalled due to a failure to reach a written agreement, a source familiar with the discussions told Rudaw, speaking on condition of anonymity due to the sensitivity of the matter. 'The federal government has not agreed to put the agreement in writing and wants it to remain verbal,' the source said, adding that 'the Kurdistan Regional Government insists on a written deal.' According to the source, Baghdad's reluctance is rooted in fears that a formal agreement could be exploited by political rivals of Iraqi Prime Minister Mohammed Shia' al-Sudani ahead of the country's legislative elections scheduled for November 11. Earlier, on Sunday, sources from both Erbil and Baghdad told Rudaw that negotiations had been progressing in a 'calmer environment' compared to past rounds of talks. However, one major sticking point remains: the volume of oil the KRG is required to deliver to Iraq's State Oil Marketing Organization (SOMO). While Baghdad insists the KRG must export 400,000 barrels per day (bpd), Erbil has proposed an initial volume of 280,000 bpd, the source added.
Iraqi News
9 hours ago
- Iraqi News
Iraqi power plants shut down due to Iran's declining gas supplies
Baghdad ( – The Iraqi Ministry of Electricity said on Tuesday that a reduction in Iranian gas supply has resulted in the closure of several power facilities and the loss of 3,800 megawatts. In contrast to the agreed-upon amounts of 55 million cubic meters per day between the two countries, the amounts of gas imported from the Islamic Republic of Iran have significantly decreased in recent hours, dropping to about 25 million cubic meters per day, according to Saad Farih, the director of the Fuel Directorate at the Iraqi Ministry of Electricity. This abrupt reduction caused many gas-fired power plants in Iraq to be out of order, according to Farih. Through ongoing cooperation with the Ministry of Oil, the Ministry of Electricity is making significant efforts to restore balance to the generating system and address some of the current shortfall by utilizing alternative fuels, according to the Iraqi official. The Iraqi Minister of Electricity, Ziyad Ali Fadel, said earlier that while Iraq generated 27,000 megawatts of electricity in 2024, the actual need was 48,000 megawatts. Fadel revealed in April that the ministry is undertaking initiatives that employ local fuel. He explained that achieving energy self-sufficiency and cutting dependency on imported fuel, which has led to a crisis in the country's electrical system in the last few years, are the main goals of the government's strategy to grow the energy sector. With the help of locally produced fuel, Iraq's electrical sector is set to make substantial progress toward power production projects, which will eventually lead to energy self-sufficiency.
