National Debt (% of GDP): Iraq

Analysis# Iraq National Debt (% of GDP) Iraq's national debt stood at 58% of GDP in 2026, a dramatic improvement from its catastrophic 344.3% peak in 2004 during post-invasion reconstruction. The country has reduced its debt burden by 83.2% over two decades, though current levels remain elevated compared to the 2014 low of 27.6%. The long-term downward trajectory reflects Iraq's gradual economic stabilization and oil revenue recovery following years of conflict and instability. Recent volatility reveals underlying economic fragility. Debt climbed sharply to 72.5% in 2020 amid the pandemic and oil price collapse, then declined to 39% by 2022 as energy markets recovered. Since then, the ratio has trended upward again, rising from 42.1% in 2023 to the projected 58% in 2026. This uptick suggests renewed fiscal pressures despite improved conditions compared to the 2004 baseline.