The World Bank has projected that Iraq’s economy will grow by 1.2% in 2025, marking a positive turnaround from the -1.5% contraction recorded in 2024, according to its latest economic forecast.
The international financial institution’s report indicates an even stronger performance ahead for Iraq, with economic growth expected to accelerate significantly to 4.4% in 2026. The projection then moderates to a solid 3.1% growth rate in 2027.
In a regional context for 2025, the World Bank’s forecast places Libya as the fastest-growing Arab economy at 12.3%, followed by Djibouti (5.2%) and Lebanon (4.7%). At the other end of the spectrum, Yemen is projected to see a contraction of -1.5%, while Syria’s growth is forecast at 1%.
The World Bank’s forecast signals a period of stabilization and recovery for the Iraqi economy, with a more robust growth phase anticipated for next year.
Source: IraqiNews.com
