Iraq’s budget deficit surges 346% as oil revenues slump
- Iraq's budget deficit increased by 346% year-on-year, reaching 36.26 trillion Iraqi dinars ($23.9 billion) in the first nine months of 2026 due to slumping oil revenues.
- Government expenditures totaled 89.08 trillion dinars, while revenues were only 52.82 trillion dinars, covering just 59.3% of total spending.
- Oil revenues dropped by 50.8% compared to the previous year, stressing the economy's dependence on crude exports amid ongoing regional conflicts.
- The World Bank projects Iraq's economy to contract by 12.4% in 2026, attributing this decline to disruptions in oil production and exports caused by conflict.
- International Monetary Fund analysis indicates the oil price needed to balance Iraq's budget rose to $84 per barrel in 2024 from $54 in 2020, with a projected fiscal deficit of 9.2% of GDP for 2026.
- Employee compensation accounted for the largest portion of Iraq's expenditure at 46.13 trillion dinars, while oil revenues formed the bulk of government income at 38.5 trillion dinars.
