Iraq economic growth is gaining momentum after a slight contraction of 0.2 percent in 2024, according to the International Monetary Fund. Experts say the rebound reflects the resilience of Iraq’s energy sector and reconstruction initiatives.
The IMF expects the Iraqi economy to expand 0.5 percent in 2025. It predicts growth will accelerate to 3.6 percent in both 2026 and 2027. By 2028, growth should reach 3.9 percent, rising further to 4.1 percent in 2029 and 2030. These projections highlight Iraq’s long-term recovery potential and investment attractiveness.
In the regional context, Saudi Arabia will remain the largest economy with a GDP of $1.6 trillion. The United Arab Emirates follows at $764.8 billion, while Egypt is forecasted at $589.8 billion.
Meanwhile, Iraq is projected to secure fourth place in regional GDP rankings with $345.9 billion. Analysts attribute this growth to strong oil exports, ongoing reconstruction projects, and rising foreign investments. Algeria comes next at $309 billion, followed by Qatar at $296.8 billion, Morocco at $241.9 billion, and Kuwait at $190.1 billion.
The IMF notes that Arab economies pursue diverse growth strategies. Many countries are boosting investment in renewable energy, tourism, and technology to reduce dependence on oil. Iraq is adopting similar approaches while sustaining its energy exports and reconstruction efforts.
Economists emphasize that Iraq economic growth relies on continued reforms and an improved investment climate. Government initiatives aim to modernize infrastructure, attract foreign capital, and support private sector expansion.
Moreover, sustained growth could strengthen Iraq’s geopolitical and economic influence in the region. Officials expect expansion to improve public services, create jobs, and reduce social pressures.
Looking ahead, Iraqi authorities and international partners will focus on fiscal reform, energy development, and strategic reconstruction projects. These actions will help maintain momentum toward the 2030 GDP target.
In summary, Iraq’s economy is growing steadily. Its energy resources, reconstruction efforts, and economic reforms will position the country as a competitive regional economy by 2030.
