IMF Commends Iraq’s Economic Growth Amid Policy Development Discussions
Date: 2 March 2025
The International Monetary Fund (IMF) has expressed its commitment to supporting Iraq in developing robust financial policies, noting a significant 5% growth in the non-oil Gross Domestic Product (GDP) for the country during 2024. This announcement follows a series of productive meetings held in Amman from February 24 to 26, 2025, attended by key officials including Minister of Finance Taif Sami Muhammad and the Governor of the Central Bank of Iraq.
According to the Ministry of Finance, discussions involved experts from various ministries—including finance, planning, oil, electricity, and the central bank—focused on macroeconomic indicators. The growth in non-oil GDP was attributed to advancements in the agricultural sector and an increase in public spending, with projections suggesting continued growth of 3.5% in 2025. The IMF’s representatives emphasized that these figures reflect improvements in economic diversification and a reduction in oil dependency, thereby enhancing the stability of the national economy. Additionally, the discussions centered on actual expenditures and the anticipated revenues for the year 2024, alongside strategies to finance any deficits.
The delegation also addressed updates to the public debt strategy, emphasizing mechanisms intended to ensure financial sustainability and bolster investor confidence in government bonds. The IMF highlighted the crucial role of a developed banking sector in supporting investments and attracting foreign capital, which is vital for establishing a more stable financial environment.
In its commitment to assisting Iraq, the IMF plans to provide necessary consultants and experts to aid the Ministry of Finance in managing public debt and refining the tax system to align with economic growth requirements. Efforts to enhance financial stability were underscored through agreements to strengthen cooperation with foreign correspondence, facilitating foreign trade financing while promoting the use of the Iraqi dinar in significant transactions—steps that collectively aim to reinforce the national currency’s strength.
The meetings concluded with a reaffirmation of the Iraqi government’s commitment to ongoing financial and economic reforms. This reflects its dedication to achieving financial sustainability that fosters development and stimulates investment, all under the framework of a sustained strategic partnership with the IMF.
