Baghdad — The International Monetary Fund (IMF) has raised its forecast for Iraq’s economic growth and lowered its projection for inflation in its latest World Economic Outlook report.
According to the IMF, Iraq’s real GDP is now expected to grow by 0.5 percent in 2025, compared with an earlier estimate of a 0.2 percent contraction published in April. Growth for 2026 has also been revised upward to 3.6 percent, from a previous forecast of 1.4 percent.
At the same time, the Fund reduced its inflation estimates, projecting consumer price growth of 1.5 percent this year and 2.5 percent next year, down from 2.5 percent and 2.7 percent, respectively.
The IMF said the adjustments reflect improved oil sector stability, higher non-oil activity, and controlled price dynamics, supported by monetary and fiscal coordination between the Central Bank of Iraq and the government.


The full report can be downloaded here.