Building in Iraq

Iraq Economy

Iraq's economy in numbers:

Nominal GDP of USD 243 billion in 2023.

Nominal GDP of USD 262 billion in 2022.

GDP per capita of USD 6,213 compared to the global average of USD 10,589.

GDP per capita of USD 5,609 compared to the global average of USD 10,589.

Average real GDP growth of 2.4% over the last decade.

Average real GDP growth of 3.9% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2021, services accounted for 42% of overall GDP, manufacturing 2%, other industrial activity 52%, and agriculture 4%. Looking at GDP by expenditure, private consumption accounted for 56% of GDP in 2020, government consumption 22%, fixed investment 19%, and net exports 3%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2016, manufactured products made up 0% of total merchandise exports, mineral fuels 100%, food 0%, ores and metals 0% and agricultural raw materials 0%, with other categories accounting for 0% of the total. In the same period, manufactured products made up 66% of total merchandise imports, mineral fuels 23%, food 7%, ores and metals 3% and agricultural raw materials 0%, with other goods accounting for 1% of the total. Total exports were worth USD 118 billion in 2022, while total imports were USD 47 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

The economy recorded average annual growth of 3.9% in the decade to 2022. To read more about GDP growth in Iraq, go to our dedicated page.

Fiscal policy:

Iraq's fiscal deficit averaged 3.0% of GDP in the decade to 2022. Find out more on our dedicated page.

Unemployment:

The unemployment rate averaged 12.7% in the decade to 2022. For more information on Iraq's unemployment click here.

Inflation:

Inflation averaged 2.0% in the decade to 2022. Go to our Iraq inflation page for extra insight.

Monetary Policy:

Iraq's monetary policy rate ended 2022 at 4.00%, down from 6.00% a decade earlier. See our Iraq monetary policy page for additional details.

Exchange Rate:

From end-2012 to end-2022 the dinar weakened by 20.2% vs the U.S. dollar. For more info on the dinar, click here.
After shrinking 2.4% year on year in Q1, the economy expanded 8.4% in Q2, according to a Central Bank estimate. This was likely due to a rebound in oil production in the quarter as Iraq flouted its OPEC+ production quota. Turning to Q3, available data suggests that economic momentum ebbed: The country improved its compliance with its OPEC+ quota in the quarter after the regional Kurdistan government cut production under pressure from Saudi Arabia, causing Iraqi oil output to slip back into contraction. That said, non-oil activity should have been boosted by a relatively stable political climate, foreign investment and higher public spending—regarding the latter, the 2024 budget approved in June pencils in a roughly 6% rise in government expenditure versus 2023. Turning to Q4, the extension of OPEC+ quotas until December will be dragging on the economy.
Projections out to 2034.

38 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 12 expert analysts.

Want to get insight on the economic outlook for Iraq in the coming years? FocusEconomics collects projections out to 2034 on 38 economic indicators for Iraq from a panel of 12 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Iraq economy. To download a sample report on the Iraq's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.

Iraq Economic Data

2019 2020 2021 2022 2023
Population (million) 39.1 40.2 41.2 42.2 43.3
GDP (USD bn) 232 180 206 285 243
GDP per Capita (USD) 5,929 4,490 5,009 6,740 5,612
GDP (IQD bn) 276,158 215,662 301,153 415,628 330,046
Economic Growth (Nominal GDP, ann. var. %) 2.7 -21.9 39.6 38.0 -20.6
Economic Growth (Real GDP, ann. var. %) 5.5 -12.0 1.6 7.6 -2.9
Oil Production (mn barrels per day, aop) 4.68 4.05 4.02 4.44 4.28
Unemployment (% of active population, aop) 14.1 15.8 16.2 15.6 15.5
Fiscal Balance (% of GDP) 0.8 -12.8 -0.4 8.1 -1.2
Public Debt (% of GDP) 43.4 76.5 57.6 40.0 44.5
Money (ann. var. of M2 %) 8.4 15.9 16.7 20.3 7.5
Inflation (CPI, ann. var. %, aop) -0.2 0.6 6.0 5.0 4.4
CBI Policy Rate (%, eop) 4.00 4.00 4.00 4.00 7.50
Exchange Rate (IQD per USD, eop) 1,190 1,461 1,460 1,460 1,309
Exchange Rate (IQD per USD, aop) 1,190 1,196 1,460 1,460 1,357
Current Account Balance (USD bn) 15.8 -6.3 24.6 58.0 28.4
Current Account Balance (% of GDP) 6.8 -3.5 11.9 20.4 11.7
Merchandise Trade Balance (USD bn) 32.2 5.8 38.4 71.1 43.2
Merchandise Exports (USD bn) 81.6 46.9 73.1 118.0 99.1
Merchandise Imports (USD bn) 49.4 41.0 34.7 46.9 56.0
Merchandise Exports (ann. var. %) -5.5 -42.6 56.0 61.5 -16.0
Merchandise Imports (ann. var. %) 27.1 -16.9 -15.4 35.1 19.3
Foreign Direct Investment (USD bn) -3.5 -2.9 -2.6 -2.1 -5.3
International Reserves (USD bn) 63.3 48.6 58.6 89.4 102.8
International Reserves (months of imports) 15.4 14.2 20.2 22.9 22.0

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