The World Bank In Iraq

Iraq is one of the most oil‑dependent countries in the world. Over the last decade, oil revenues have accounted for more than 99% of exports, 85% of the government’s budget, and 42% of gross domestic product (GDP). This excessive dependence on oil exposes the country to macroeconomic volatility, while budget rigidities restrict fiscal space and any opportunity for countercyclical policy. As of January 2021, in a country of 40.2 million, Iraq’s unemployment rate was more than 10 percentage points higher than its pre‑COVID‑19 level of 12.7 percentage points. Unemployment among the displaced, returnees, women jobseekers, pre‑pandemic self‑employed and informal workers remains elevated.