Image Credit: Forbes Middle East
Iraq Enters a New Era of Growth with Highest-Ever Foreign Currency Reserves, Says Official
Iraq is enjoying economic stability and growth, said the Prime Minister’s Financial Advisor, Mudhar Mohammed Salih, on Thursday. He added that the country’s foreign currency reserves are now at their highest level ever.
Strong Economy
He said that Iraq is doing well economically, with low inflation and unemployment. The economy is growing steadily, according to the Iraqi news agency INA.
Iraq has over $100 billion in foreign exchange reserves and more than 163 tons of gold, based on official data.
The non-oil sector of the economy grew by 5% in 2024 and is expected to grow by about 4% in 2025.
However, Iraq had a budget deficit of $3.82 billion (5 trillion dinars) in 2024. This is 1.5% of its GDP, not counting money owed for investment and energy projects.
Interesting Fact
In November, Fitch Ratings kept Iraq’s credit rating at B- with a stable outlook. This shows that while Iraq has some strong points, it still faces big challenges like depending too much on oil and dealing with political and structural issues.
Current Challenges
Salih said Iraq faces serious economic problems because of the ongoing war in the Middle East. This could affect Iraq’s trade with the world, especially its oil exports.
About 30% of the world’s energy supply passes through the Gulf and the Strait of Hormuz. Almost 99% of Iraq’s oil is shipped through this area, mostly to Asian countries.
The Strait of Hormuz, near Iran’s southern coast, sees around 19 million barrels of oil and refined products move through it each day, according to Reuters.
He noted that crude oil prices rose by about $10 before the recent conflict between Israel and Iran. This rise was good for oil earnings, but there are risks.
Ongoing conflicts can increase costs for shipping, insurance, and imports, which could hurt the economy.
Published: 23th June 2025
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