Country risk rating


HIGH RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD226bn (World ranking 49, World Bank 2018)
Population 38.43mn (World ranking 36, World Bank 2018)
Form of state Federal Parliamentary Republic
Head of government Adil ABD AL-MAHDI (Prime Minister)
Next elections 2022, presidential and legislative
  • Ample oil reserves
  • Low inflation since 2013
  • International support
  • Ample foreign exchange reserves (covering more than 15 months of imports)
  • Despite reduced capabilities, the Islamic State remains active in some parts of the country, posing very high security and terrorism risks as well as high operational risks to doing business in Iraq
  • Deep religious, ethnic and political tensions. The Kurdistan issue has not been resolved yet, a part of the country is secessionist
  • Conflicting interests of powerful political blocks prevent substantial political reforms
  • Water and power shortages have the potential to trigger (violent) social unrest
  • Very weak business environment, including poor rule of law and a high level of perceived corruption
  • High dependence on oil revenues, resulting in very volatile fiscal and current account balances
  • High public debt


Contact Euler Hermes

Economic Research Team