World Bank projects Iraq's economy to contract 2.2% in 2026

KUWAIT CITY, Kuwait — The World Bank forecast Iraq's economy will contract by 2.2% in 2026, with the contraction deepening sharply to 8.9% in 2027, according to the bank's Global Economic Prospects report published in June 2026. The report showed Iraq's economy grew 0.5% in 2024 before shrinking 1.5% in 2025, and projected a 12.2% expansion in 2028. Quarterly data indicated the Iraqi economy contracted by 0.6% year-on-year in the first quarter of 2025, 1.7% in the second, 3.7% in the third and 0.9% in the fourth quarter, with a 2.3% contraction expected in the first quarter of 2026. The same report projected Saudi Arabia's economy to grow 3.1% and the United Arab Emirates' economy to expand 2.4% in 2026, while Kuwait's economy was forecast to contract 6.4%. The World Bank revised its 2026 growth outlook for the Middle East, North Africa, Afghanistan and Pakistan region to 1.6%, and its 2027 outlook to 5%.