2026-04-15T06:12:20+00:00
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Shafaq News- Baghdad
Iraq’s economy is set to contract by around 6.8% in 2026, the
International Monetary Fund (IMF) forecasted on Wednesday, citing rising
tensions in the Middle East and pressure on energy markets as key drivers
behind the outlook.
Despite the recent surge in international oil prices, which typically
supports exporting economies, the IMF cautioned that these gains for Iraq may
be offset by higher import costs and rising inflation. It added that this
dynamic is likely to increase pressure on households and push up prices for
essential goods and services.
The Fund also warned that a prolonged escalation could drive oil prices
above $110 per barrel, complicating global efforts to contain inflation and
prompting tighter monetary policy.
In previous reports, the IMF expected Baghdad’s economy to expand 3.6%
in both 2026 and 2027. The pace is projected to strengthen further, reaching
3.9% in 2028 and 4.1% by 2029 and 2030.