Baghdad: Finance Minister Taif Sami announced on Monday that the Iraqi economy recorded a 5% growth in non-oil GDP in 2024, while noting that the budget deficit is low and does not pose a threat to Iraq’s public debt.
According to National Iraqi News Agency, Sami said in a statement to the official news agency: “A high-level government delegation, including the Governor of the Central Bank, Ali Al Alaq, accompanied us, discussed with the International Monetary Fund (IMF) mission the latest economic and financial developments in Iraq during a meeting held in the Jordanian capital, Amman.”
She added that “the IMF mission reached a number of positive indicators related to the Iraqi economy, most notably a 5% growth in non-oil GDP in 2024, driven by the growth of the agricultural sector and increased public spending,” indicating that “expectations indicate continued growth of 4% in 2025.”
She added that “the level of oil GDP will remain dependent on OPEC decisions regarding production ceilings and global crude oil prices.”
Regarding the fiscal deficit, Sami explained that “the deficit reached 5 trillion dinars in 2024, equivalent to 1.5% of GDP, excluding debt repayments and overdue receivables for investment and energy projects.” She noted that “this is a low level that will not negatively impact the public debt ratio, according to International Monetary Fund estimates.”
The Minister of Finance stressed “the need to restructure government banks to enable them to absorb government financing instruments and stimulate the market,” noting that “the Ministry of Finance, in cooperation with the International Monetary Fund, will contract with consulting firms to support the Public Debt Department, in addition to appointing new staff with higher education degrees to activate the public debt management and financial analysis system.”
She indicated that “the International Monetary Fund expressed its readiness to provide technical and advisory support to Iraq, particularly in the areas of public debt management, tax reform, and determining the most appropriate tax systems for the Iraqi social situation, through the Middle East Technical Assistance Center (METAC),” explaining that “the delegation and the International Monetary Fund stressed the importance of strengthening the relationship with foreign correspondent banks in the field of financing foreign trade, as well as supporting the use of the Iraqi dinar in economic transactions to maintain the stability of the local currency.