Spending down, money supply shrinking: Iraq’s year-end financial snapshot

Shafaq News/ Iraq’s Central Bank (CBI) reported a significant decline in government spending and a corresponding decrease in the volume of currency in circulation by the end of 2024.

In a report on monetary and financial indicators, CBI said government spending dropped by 5.54% in December, totaling 12.95T IQD (about $10B) compared to 13.71T IQD (about $10.5B) recorded in November.

The decline in spending was accompanied by a reduction in the currency issued, which fell by 0.34 trillion dinars to reach 100.54T IQD ($76.8B) in December, down from 101.34T IQD ($77.4B) in November.

Last February, German market and consumer data platform Statista forecasted that Iraq’s government spending as a percentage of GDP would decrease in the coming years.

According to Statista’s report, government spending in Iraq accounted for 48.43% of GDP in 2024, marking the highest share in the past five years. However, it is projected to fall to 47.94% in 2025 and further to 45.1% by 2029.