EBRD expects Iraq’s economy to contract by 1.5% in 2026

The European Bank for Reconstruction and Development (EBRD) forecasts a 1.5% contraction in Iraq's economy next year, citing rising energy costs and disrupted supply chains as major factors. This prediction underscores the ongoing challenges Iraq faces in stabilizing its economy amidst global economic shifts. The implications are significant, as a shrinking economy could exacerbate unemployment and poverty levels, hindering the country's development goals. This outlook highlights the broader impact of international economic trends on developing nations.