Iraq’s gross domestic product (GDP) has increased by 35% annually, fueled by a sharp rise in investment expenditures exceeding 88 trillion Iraqi dinars ($67.2 billion) across various sectors, according to Mazhar Saleh, financial advisor to the prime minister.
Speaking to the Iraqi News Agency (INA), Saleh noted that the private sector contributed 40% of total investment spending, either through independent initiatives or in partnership with public sector entities.
Earlier this year, Mohamed Sahib Al-Daraji, technical affairs advisor to the prime minister, confirmed that Iraq’s GDP has now surpassed $260 billion. He also reported a combined $60 billion in domestic and foreign investment, along with a significant decline in external debt, from $20.9 billion to $9.8 billion.
Al-Daraji emphasized Iraq’s relatively low foreign debt-to-GDP ratio, stating that this enables the country to engage in new external financing under favorable conditions. He also called on Iraqi investors to diversify their investments, noting that the bulk of current investment is concentrated in housing and real estate.
Following a recent meeting with International Monetary Fund (IMF) officials in Amman, Finance Minister Taif Sami revealed that Iraq’s non-oil GDP grew by 5% in 2024, largely driven by public expenditure and expansion in the agriculture sector. IMF projections forecast a further 4% growth in 2025.
Sami added that while OPEC’s production decisions and global oil prices will continue to impact Iraq’s oil-based GDP, the country is making progress in reducing its reliance on hydrocarbons.
In terms of fiscal balance, Iraq recorded a budget deficit of five trillion dinars ($3.82 billion) in 2024, representing 1.5% of GDP. Sami clarified that, according to IMF assessments, this is a modest level and is unlikely to negatively affect the country’s debt sustainability.
Source: IraqiNews.com
