Browse additional economic indicators and data sets, selected by Global Finance editors, to learn more about Iraq economic outlook, debt to GDP ratio, international trade performance and population trends. Rankings of Iraq best banks and safest banks are also available.

Despite its abundant oil reserves, Iraq grapples with formidable challenges. According to the World Bank, Iraq’s economy relies on oil for over 99% of its exports, 85% of the government’s budget, and 42% of the total GDP, leaving the nation vulnerable to price fluctuations. Along with the limited diversification of its revenue streams, Iran’s progress is hindered by high public debt, a weak private sector, bureaucratic hurdles and corruption.

Nevertheless, in recent years, Iraq has attracted increasing interest from foreign investors, particularly in sectors such as energy, construction, and retail. Additionally, Iraq can also boast a rapidly growing and youthful population, presenting an opportunity for a dynamic workforce capable of driving economic growth.

The chart at left compares Iraq’s debt-to-GDP ratio to the regional average. It illustrates how the country has been successful at keeping its debt burden in line with its national productive capacity.