Iraq: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Iraq

IMF Staff Country Reports, February 11, 2021

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Iraq's socio-economic fragilities have been severely aggravated by the pandemic and the sharp decline in oil revenues.
The decline in oil revenues arrived on the heels of widespread social unrest and political instability.
The health system’s limited capacity has been strained.
The fiscal position has become untenable as oil revenues declined sharply to a level that barely covers the government’s large wage and pension bills.
Although the number of new infections declined recently, Iraq registered the second-highest COVID-related fatalities in the region.
The fiscal response to the pandemic has been one of the lowest in the region.
A six-month political paralysis preceding the formation of the government in May 2020 and plans to hold early parliamentary elections in mid-2021 have been weighing on political support for reforms.
Risks of social unrest, geopolitical tensions, and insecurity remain elevated.

Oil revenues declined sharply to a level that barely covers the government’s large wage and pension bills.
The fiscal position has become untenable.

The health system’s limited capacity has been strained.
Iraq registered the second-highest COVID-related fatalities in the region despite a recent decline in new infections.
The fiscal response to the pandemic has been one of the lowest.

A six-month political paralysis preceded the formation of the government in May 2020.
Plans to hold early parliamentary elections in mid-2021 have weighed on political support for reforms.
Elevated risks include social unrest, geopolitical tensions, and insecurity.