Economy Iraq expects 4% non-oil growth in 2025 By Nadim Kawach May 5, 2025, 4:42 PM Alamy via Reuters Continued growth in Iraq's non-oil sector is predicted, with a significant contribution from a thriving farming sector Positive indicators from IMF Slight fall from last year Growth in farming sector Iraq expects its non-oil sector to grow by 4 percent in 2025 after increasing by 5 percent last year, the country’s finance minister said on Monday. The budget deficit was ID 5 trillion ($3.8 billion) last year, below forecast, Taif Sami told the official Iraqi news agency. Citing the International Monetary Fund, the minister said that non-oil growth last year was driven by high state spending and a surge in the farming sector. “The IMF mission has reported a number of positive indicators for Iraq’s economy, mainly that there was a growth of 5 percent in the non-oil sector. Expectations are that it will continue to grow by around 4 percent in 2025,” she said. “As for the oil sector, growth remains dependent on crude prices and the decision by Opec+ regarding production by each member,” she said. Sami said last year’s budget shortfall was only around 1.5 percent of GDP after debt repayment and dues to project contractors were excluded. “I believe that this is a low deficit which does not negatively affect public debt according to the IMF estimates,” she added. Iraq revives war-devastated fertiliser plant Iraq’s long delayed Faw port nears completion Iraq and Turkey to devise roadmap for expanded trade In 2023 Iraq projected a deficit of 64 trillion dinars ($49 billion) in a 3-year budget for 2023-2025 passed by parliament. The budget was based on an average oil price of $70 a barrel and crude exports of 3.4 million barrels per day. Annual spending was set at $153 billion but parliament allows the finance ministry to revise expenditure through the year depending on oil market conditions. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
