Baghdad (IraqiNews.com) – The Trade and Economic Research Centre (TREC) of the Iraqi Ministry of Trade projected that the country will face significant challenges due to regional developments, given Iraq’s heavy reliance on revenues generated from oil exports. According to research released by the TREC amid growing regional tensions and their impact on Iraq, the country’s economy is expected to shrink in 2026, owing to declined oil output and export levels. Iraq’s oil exports fell sharply in March, highlighting the national economy’s significant sensitivity to interruptions in energy markets and export routes, according to the study.
Data from the State Organization for Marketing of Oil (SOMO) showed that Iraq’s total oil exports in March 2026 reached approximately 18.6 million barrels, compared to approximately 99.8 million barrels in February and around 107.6 million barrels in January. The revenues generated from oil exports in March 2026 amounted to approximately $1.95 billion, compared to $6.81 billion in February and $6.48 billion in January. The TREC mentioned that the fragile economy will put a strain on public income, increase import and transportation bills, and worsen inflationary pressures in the domestic market. The study also stated that it is critical to take actions to enhance the national economy by expanding trade channels, safeguarding supply chains, and boosting market stability to increase trade and food security as well as the seamless flow of necessary products.