Iraq profile

Demography and Health

Iraq in 2024 is home to about 46 million people, making it the 34th most populous country in the world. The country has a high birth rate of 25.7 per 1,000 people and a crude death rate of 4.13 per 1,000, indicating a young and growing population with substantial future labor needs. Life expectancy at birth stands at 72.3 years, while under-5 mortality is 22.6 per 1,000 live births, signaling ongoing public health challenges despite progress over time. The population’s nutrition picture shows 16.1% undernourishment, suggesting pockets of vulnerability even as overall indicators improve. Health system capacity appears constrained: about 1.01 physicians and 1.3 hospital beds per 1,000 people, with current health expenditure at 4.29% of GDP and domestic general government health expenditure per capita (PPP) of about 237 international dollars. These numbers imply a relatively limited health workforce and capital stock relative to needs, potentially affecting access and quality of care, especially in rural areas or amid shocks. Net migration in 2024 is negative by roughly 17,700 people, a small outflow in absolute terms but worth watching for its impact on age structure and skilled labor. Internet access is relatively high at 81.7% of the population, pointing to opportunities for digital health, telemedicine, and information-based services that could help mitigate some health system constraints. Overall, Iraq’s demographic dividend potential is substantial if job creation, education, and health system investments align; conversely, without improved governance, economic stability, and social protection, the young population could face rising vulnerabilities.

Economy

Iraq’s economy in 2024 shows a modest per capita income profile, with GDP per capita at about $6,074 (current US$) and GDP per capita at PPP around $14,464, reflecting a sizeable wedge between market prices and purchasing power. The structure of the economy is exposed to global commodity cycles: exports of goods and services equal about 37.5% of GDP, while imports are 37.2% of GDP, suggesting a relatively open economy with heavy reliance on international trade for goods and services, much of which is likely channelled through energy and fuel products. An estimated current account balance of 10.6% of GDP in 2023 points to a significant external surplus, consistent with oil revenue inflows, though this reliance also heightens exposure to oil price volatility and terms-of-trade shocks. Inflation stood at 4.36% in 2023, a moderate pace that supports macro stability but requires ongoing vigilance given external and security-related risks. Unemployment is elevated at about 16.2% (2021), underscoring the need for job creation and diversification away from oil to ensure broad-based growth. Alongside, foreign direct investment net inflows are negative at approximately -2% of GDP (2023), signaling capital outflows or investor risk aversion, possibly tied to governance and security concerns or perceived policy uncertainty. The military outlay of roughly $5.1 billion in 2023 (ranked 42) indicates substantial public expenditure commitments that compete for fiscal space with social and investment needs. On the energy and innovation front, Iraq demonstrates a heavy energy dependence with renewable energy accounting for just 1.1% of total final energy consumption (2021) and a modest research and development expenditure of about 0.041% of GDP in 2021, suggesting limited diversification in technology and productivity-driven growth.

Trade and Investment

Trade openness in Iraq shows a balance between exports and imports relative to GDP, with exports at 37.5% of GDP and imports at 37.2% (2024), implying a relatively balanced external trade stance for a resource-rich economy. The country’s logistics and trade infrastructure score modestly, with a Logistics Performance Index (quality of trade and transport-related infrastructure) of 2.2 (2022), which translates into tangible frictions for cross-border commerce and supply chains. Foreign direct investment remains negative as a share of GDP (-1.99% in 2023), signaling limited inward investment appetite, possible policy or governance concerns, or ongoing regional risk perceptions that deter long-term capital commitments. The current account surplus, in the context of substantial oil exports, suggests a windfall-like revenue stream that can fund domestic development but may fail to translate into broad-based inclusive growth if governance and diversification remain weak. The country’s external position is further shaped by a relatively high openness to trade but insufficient non-oil export diversification, which would be essential to stabilize growth when oil revenues fluctuate.

Governance and Institutions

Governance indicators across regulatory quality, rule of law, and government effectiveness are negative, signaling substantial institutional challenges. Regulatory Quality is around -1.44, Rule of Law around -1.69, and Government Effectiveness around -1.39, while Control of Corruption sits at -1.32 and Political Stability and Absence of Violence/Terrorism at -2.41, indicating vulnerability to instability and a fragile governance environment. These patterns imply weak public sector performance, potential difficulties in maintaining predictable policy frameworks, and elevated risk for investors and citizens relying on state delivery of services. A Logistics Performance score of 2.2 (2022) adds another dimension of institutional bottlenecks affecting trade and infrastructure deployment. Taken together, these indicators point to a governance regime facing significant credibility and capability gaps, which can hamper reform progress, investment climate, and the effectiveness of public health, education, and social protection programs.

Infrastructure and Technology

Infrastructure and technology in Iraq are characterized by limited physical capital and capacity coupled with notable digital penetration. The hospital and health system metrics—1.3 beds and 1.01 physicians per 1,000 people (2021–2022)—reflect constrained health infrastructure; in broader terms, the country’s transport and logistics infrastructure receives a 2.2/5 rating on the Logistics Performance Index (2022), underscoring gaps in connective networks that affect trade, cost of doing business, and disaster resilience. The digital landscape shows 81.7% internet penetration (2023), indicating substantial digital reach that can support e-government, online services, education, and potential digital economy growth. However, the research and development outlay remains low, at about 0.041% of GDP (2021), implying limited innovation capacity and slow productivity gains unless policy priorities shift. Renewable energy shares are minimal at 1.1% (2021), highlighting an energy mix dominated by fossil fuels and signaling both environmental risk and an opportunity for transition to renewables with favorable climate, health, and energy security implications. Overall, infrastructure and technology capacity in Iraq offer a platform for digital transformation and targeted investments, but require substantial improvements in physical infrastructure, energy diversification, and R&D to unlock higher productivity and resilience.

Environment and Sustainability

Iraq faces significant environmental and resource pressures. The level of water stress, measured as freshwater withdrawal as a share of available resources, stands at 59.6% (2021), indicating acute water scarcity concerns that affect households, agriculture, and industry, and that climate change and governance will shape future water security. Greenhouse gas emissions per capita are about 8.05 tCO2e, with total emissions excluding LULUCF portraying a carbon intensity shaped by energy use and industrial activity; the low share of renewable energy (1.1%) compounds emissions intensity and resilience concerns. The prevalence of undernourishment at 16.1% (2022) points to vulnerable nutrition outcomes amid economic and conflict-related disruptions. Population growth, urban expansion, and climate variability are likely to heighten stress on water and land resources unless governance and investment in sustainable infrastructure, water management, and climate adaptation are strengthened. These environmental dynamics intersect with health and development challenges, creating a need for integrated policy responses that link environmental stewardship with economic diversification and social protection.