Shafaqna English- The International Monetary Fund’s (IMF) Regional Economic Outlook report has projected a significant downturn in the Iraqi economy in 2026, primarily due to trade and production interruptions caused by war in the region.
According to the report, Iraq’s GDP is expected to decline by 6.8 percent in 2026, following a smaller decline of 0.4 percent in 2025. This places Iraq among the worst-performing economies in the Middle East and North Africa, as reported by Shafaq News. These projections indicate a substantial downward adjustment, with Iraq’s growth forecast for 2026 being nearly 10.4 percent lower than predictions made in October 2025. This highlights the severe negative impacts of geopolitical instability and disruptions in the supply chain.
Sources: Iraqi News