Shafaq News – Washington

Iraq’s economy is set to rebound after a slight 0.2% contraction in 2024, the International Monetary Fund (IMF) projected on Wednesday.

Growth is expected to pick up gradually, with the economy expanding 0.5% in 2025 and rising to 3.6% in both 2026 and 2027. The pace is projected to strengthen further, reaching 3.9% in 2028 and 4.1% by 2029 and 2030.

In the wider region, Saudi Arabia is projected to remain the largest economy, with a gross domestic product (GDP) of $1.6 trillion, followed by the United Arab Emirates at $764.8 billion and Egypt at $589.8 billion.

Meanwhile, Iraq is forecasted to secure fourth place with a GDP of $345.9 billion, supported by its energy sector, oil exports, and ongoing reconstruction and development efforts. Algeria comes next at $309 billion, followed by Qatar at $296.8 billion, Morocco at $241.9 billion, and Kuwait at $190.1 billion.

The IMF also noted that Arab economies are charting diverse paths, driven by economic reforms, as well as rising investment in renewable energy, tourism, and technology.