Fiscal Balance in Iraq
GDP recorded growth of 7.0% in 2022, buoyed by a recovery in the energy sector. However, the economy appears to be losing steam so far in 2023. A shortage of dollars and rising price pressures are hurting the non-energy economy. In addition, the panorama for the oil sector has dimmed. Oil production rose 3.0% year on year in Q1, far below the 2022 average variation. Moreover, a further deceleration in the oil sector is expected in Q2: OPEC+ announced further cuts from May, and 450,000 barrels per day of oil flows via a northern pipeline to Turkey have been halted since late-March by an international court ruling. More positively, the expansionary 2023–2025 budget presented in March should support demand if approved. Moreover, TotalEnergies recently reached a deal with the government to invest USD 10 billion in the country; the decision could spur similar commitments by other energy firms.
Iraq Fiscal Balance Chart
This chart displays Fiscal Balance (% of GDP) for Iraq from 2012 to 2021.
Iraq Fiscal Balance Data
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Fiscal Balance (% of GDP) | -1.5 | 7.8 | 0.8 | -13.9 | -0.4 |