Building in Iraq

Iraq Economy

Iraq's economy in numbers:

Nominal GDP of USD 262 billion in 2022.

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

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.


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


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.
Our Consensus is for the economy to have contracted slightly last year. Oil output fell 3.7% year on year over 2023 as a whole due to tougher OPEC+ quota restrictions and the closure of an oil pipeline to Turkey. This, coupled with lower average oil prices, hit export revenue and likely caused the fiscal balance to slip into deficit. More positively, relative political calm and expansionary fiscal policy under the 2023–2025 budget will have aided the non-oil sector. Turning to early 2024, oil production was down 4.9% in annual terms in January due to additional voluntary output cuts that Iraq pledged for Q1—and which were recently extended through Q2. However, hefty public spending increases under the multi-year budget should be buoying non-oil activity. In other news, Shell’s recent withdrawal from plans to build a petrochemicals plant highlights Iraq’s challenging business environment.
Projections out to 2033.

34 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 14 expert analysts.

Want to get insight on the economic outlook for Iraq in the coming years? FocusEconomics collects projections out to 2033 on 34 economic indicators for Iraq from a panel of 14 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

2018 2019 2020 2021 2022
Population (million) 38.1 39.1 40.1 41.2 42.2
GDP (USD bn) 226 232 180 206 262
GDP per capita (USD) 5,939 5,931 4,492 5,011 6,213
GDP (IQD bn) 268,919 276,158 215,662 301,153 383,064
Economic Growth (Nominal GDP, ann. var. %) 21.3 2.7 -21.9 39.6 27.2
Economic Growth (GDP, ann. var. %) 2.6 5.5 -12.0 1.6 7.0
Oil Production (mn barrels per day, aop) 4.55 4.68 4.05 4.02 4.44
Unemployment (% of active population, aop) 13.4 14.0 15.7 16.2 15.3
Fiscal Balance (% of GDP) 7.8 0.8 -12.9 -0.4 7.6
Public Debt (% of GDP) 47.8 45.4 78.7 59.2 44.9
Money (ann. var. of M2 %) 2.7 8.4 15.9 16.7 20.3
Inflation (CPI, ann. var. %, aop) 0.4 -0.2 0.6 6.0 5.0
CBI Policy Rate (%, eop) 4.00 4.00 4.00 4.00 4.00
Exchange Rate (IQD per USD, eop) 1,190 1,190 1,461 1,460 1,460
Exchange Rate (IQD per USD, aop) 1,188 1,190 1,196 1,460 1,460
Current Account Balance (USD bn) 34.4 15.8 -6.3 24.6 58.0
Current Account Balance (% of GDP) 15.2 6.8 -3.5 11.9 22.1
Merchandise Trade Balance (USD bn) 47.5 32.2 5.8 38.4 71.1
Merchandise Exports (USD bn) 86.4 81.6 46.9 73.1 118.0
Merchandise Imports (USD bn) 38.9 49.4 41.0 34.7 46.9
Merchandise Exports (ann. var. %) 50.0 -5.5 -42.6 56.0 61.5
Merchandise Imports (ann. var. %) 20.8 27.1 -16.9 -15.4 35.1
Foreign Direct Investment (USD bn) -4.9 -3.5 -2.9 -2.6 -2.1
International Reserves (USD bn) 60.8 63.3 48.6 58.6 89.4
International Reserves (months of imports) 18.8 15.4 14.2 20.2 22.9

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