Iraq’s financial revenues decline by 42% in June 2026

An aerial view of a part of the Iraqi capital, Baghdad. Photo: AFP Baghdad (IraqiNews.com) – Iraq’s federal budget revenues plummeted to roughly 35.94 trillion Iraqi dinars (approximately $27.45 billion) in June 2026, down from 62 trillion Iraqi dinars (about $47.3 billion) during the same month in 2025, marking a 42 percent decline. According to budget figures, the income generated from oil exports in June 2026 reached 28.5 trillion Iraqi dinars (approximately $21.76 billion), compared to 57.05 trillion Iraqi dinars (around $43.57 billion) in June 2025, representing a decline of around 28.54 trillion Iraqi dinars ($21.79 billion). The country’s non-oil income climbed to almost 7.44 trillion Iraqi dinars (about $5.68 billion) in June 2026, up from 4.95 trillion Iraqi dinars (approximately $3.78 billion) in June 2025. Oil’s proportion of overall revenues decreased from 92 percent in June 2025 to 80 percent in June 2026, while the contribution of non-oil revenues to the country’s budget climbed from eight percent to 20 percent. The World Bank’s ‘Global Economic Prospects’ report, published in June 2026, highlights Iraq as a developing economy that relies significantly on commodity earnings, especially oil. The World Bank has cautioned about the effects of commodity price volatility on the financial and economic stability of energy-exporting countries. Commodity prices have been vulnerable to periodic shocks since the start of the current decade, the most recent being the huge disruptions caused by the Middle East conflict, which resulted in dramatic swings in global markets for oil, metals, and agricultural supplies. Iraq’s economic output grew by 0.5 percent in 2024; however, according to estimates, it contracted by 1.5 percent in 2025 before continuing its downward trajectory in 2026. It is expected to rebound to a 12.2 percent growth rate in 2028. The World Bank mentioned that Iraq’s economy is one of the most vulnerable to regional developments, with its growth forecast lower compared to several other Middle Eastern oil-producing countries.