In shocking figures reflecting the scale of the crisis, the International Monetary Fund released its April 2026 report, revealing projections of a dramatic contraction in Iraq's Gross Domestic Product by up to negative 6.8% for this year. This number represents a catastrophic drop of 10.4 percentage points compared to late last year's forecasts, which had indicated positive growth. This sharp decline comes as a result of unprecedented regional tensions and trade route disruptions that have paralyzed investment activity and affected energy exports. These statistics place Iraq at the bottom of the economic growth list in the Middle East for the current year. Faced with these numbers, financial authorities find themselves in a race against time to create economic buffers that protect vulnerable populations, while awaiting the year 2027, which the same report predicts will witness a significant compensatory jump in growth reaching 11.3%.
