Current Account Balance: Iraq

Analysis# Iraq Current Account Balance Iraq's current account balance stands at -1.1% of GDP in 2026, marking a sharp reversal from the nation's exceptional 15.8% peak in 2022. The all-time low of -10.7% in 2003 provides perspective on how far the economy has recovered since the early 2000s. Over the full 2001–2030 period, Iraq's current account has declined 155%, reflecting volatile swings tied to oil price fluctuations and geopolitical instability. The trajectory from 2018 through 2022 revealed Iraq's strongest external position in decades, with surpluses averaging double digits. Oil revenues drove this windfall, but the subsequent deterioration—falling to -0.2% in 2024 before edging slightly positive in 2025—signals weakening export demand and mounting pressures. The 2026 deficit suggests Iraq faces headwinds ahead, likely stemming from lower global crude prices and rising import demands.