Iraq: 2025 Article IV Consultation-Press Release; Staff Report; and Informational Annex

International Monetary Fund

No 2025/183, IMF Staff Country Reports from International Monetary Fund

Abstract: Iraq has managed to uphold domestic stability despite regional turmoil. However, rapid expansion of spending and emerging financing constraints led to arrears accumulation in 2024. These challenges are now compounded by declining oil prices in a highly uncertain global environment, further aggravating fiscal and external sustainability risks. At the same time, the country is struggling with lingering structural economic challenges, including high unemployment, excessive state footprint, a weak banking sector, corruption, and an inefficient electricity sector.

Pages: 64
Date: 2025-07-14
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