Baghdad (IraqiNews.com) – The International Monetary Fund’s (IMF) Regional Economic Outlook report projected a major downturn in the Iraqi economy in 2026 as a result of war-related interruptions to trade and production in the region. According to the report, Iraq’s GDP is anticipated to fall by 6.8 percent in 2026, compared to a 0.4 percent decline in 2025, ranking it among the worst-performing economies in the Middle East and North Africa, Shafaq News reported. These expectations constitute a substantial downward adjustment, with Iraq’s 2026 growth projections falling by nearly 10.4 percent compared to the October 2025 forecast.

This illustrates the scale of the negative effects caused by geopolitical instability and supply chain disruption. The analysis predicted a robust rebound for the Iraqi economy in 2027, with growth reaching 11.3 percent, owing to a comeback in economic activity. This increase is predicted to become slower, reaching around 3.4 percent in 2030 and 3.5 percent in 2031.

This expected downturn comes at a time when Iraq is dealing with several complicated issues, including trade interruptions, a shrinking oil industry, and fiscal pressures. These factors put the economy in a tough situation, necessitating balanced measures to promote stability and recovery.