IMF to Launch Programme Discussions with Iraq

By John Lee.

The International Monetary Fund (IMF) is preparing to begin programme discussions with Iraq following a request from Iraqi authorities for financial and policy support. The IMF's Managing Director indicated at meetings in Bangkok that the Fund intends to support Iraq "very firmly".

According to IMF Communications Director Julie Kozack, the programme is intended to help Iraq manage the impact of the Middle East war and to address underlying structural challenges. She said the Fund expects Iraq's GDP to shrink significantly this year before rebounding in 2027.

Kozack outlined the key vulnerabilities facing the Iraqi economy:

• High dependence on oil exports through the Strait of Hormuz
• Acute government financing constraints that pre-dated the war
• A narrow non-oil revenue base
• A weak and underdeveloped banking system
• Losses accumulated since the war began in March

(Source: International Monetary Fund)

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