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Iraq commits $3bn to boost economic growth
- $2.7bn growth package announced
- Funds target housing and industry
- EBRD forecasts 2027 rebound
Iraq has allocated ID3.5 trillion dinars ($2.7 billion) to stimulate economic growth, focusing on agriculture and industrialisation, according to Prime Minister Ali Faleh Al-Zaidi.
The funding will also support housing, construction, tourism and services through public-private partnerships, and create new employment opportunities, the Iraqi News Agency reported.
The government will direct ID1 trillion from the Central Bank of Iraq’s existing initiatives to the real estate and housing sector, and increase liquidity for the Trade Bank of Iraq and the Industrial Bank by at least ID1 trillion to support industry.
The finance ministry has been directed to pay contractors and farmers dues worth ID500 billion each. The package will also increase the existing ID1 trillion Future Generations Fund Initiative by a further ID500 billion.
In September, the European Bank for Reconstruction and Development (EBRD) said it expected Iraq’s economy to contract by 12 percent in 2026 after the closure of the Strait of Hormuz curbed oil exports.
Its economy is, however, expected to rebound strongly by 14 percent in 2027, based on normalisation of oil exports and a recovery in economic activity.
Iraq has restored its oil exports to 70 percent of pre-war volumes after it increased shuttling transfers through the Strait of Hormuz and neighbouring Iran disregarded some shipments, analysts told AGBI.
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Source: AGBI