Qusay Safwan, an expert in economics, explained why Iraq’s economy is expected to grow by more than 5% by 2026.
That’s what safwan told: ” The Global Financial Asset’s assumptions went towards the outside perspective on the Iraqi economy considering the outcome of the public authority of Mohammed Shia al-Sudani in paying off outer obligations from $20 million to $9 million, which gives consolation to the situation with the Iraqi economy for the next few years, taking into account that the premium on those obligations will be low.”
He went on to say, “There are also projects that the government of al-Sudani has started at the level of stopping gas flaring and investing associated gas in supplying electricity, meaning reducing outward cash flows to reduce the import of electricity and gas,” and “There are also projects that the government of al-Sudani has started at the level of finishing the Faw port in the middle of 2025 and entering the operational testing phase until it is linked to the European Union.”
“The possibility of Iraq’s GDP rising to 5% in the event of adding initiatives by the Central Bank to pay small and medium-sized projects, which is currently at a rate of $270 billion annually,” Safwan continued, “This means adding non-oil revenues, and these indicators indicate a positive outlook that could contribute to reclassifying Iraq’s credit rating from C3 Plus to B Minus.”
He continued, “Iraq is currently a partner with the International Finance Corporation, which is attempting to rebuild Iraqi airports,” and “there is confidence in Iraq’s ability to operate these amounts and return them to lenders, as two billion dollars will be pumped into developing and expanding Baghdad International Airport.”
Safwan emphasized “the importance of transforming understandings into a studied reality in the field of foreign investment,” noting that “the process of developing the energy sector in terms of gas and oil through licensing rounds will contribute to increasing Iraq’s future revenues, as it is looking forward to 6 million barrels for export purposes, meaning that there is a possibility of increasing the ability to spend oil revenues on investment projects.”
The World Bank anticipated that Iraq should accomplish financial development of over 5% in 2026, noticing that the recuperation in the oil area in 2025 will contribute fundamentally to improving this development.
In its report, the bank expressed that Iraq’s financial development for the year 2022 came to 7.6%, and in 2023 it diminished to – 2.9.
Additionally, the report anticipated that Iraq’s economic expansion would slow to -0.3 percent in 2024, accelerate to 3.8% in 2025, and reach 5.3% in 2026.
The report showed that oil-trading nations outside the Bay Participation Gathering, like Iraq and Algeria, would profit from the normal recuperation in the oil area in 2025, which would assist with supporting financial development in these nations.
