Iraq: Billions of dollars drop in trade balance, oil derivative exports rise

The Iraq Future Foundation for Economic Studies and Consultations reported on Sunday that the country’s trade balance declined to a surplus of approximately $6 billion during the first half of this year, compared to last year.

The institution stated in a report published today that Iraq’s trade balance declined by 33% in the first half of 2025 compared to the first half of 2024, reaching a surplus of $11.7 billion, compared to $17.6 billion in the first half of 2024.

The head of the institution, economic expert Manar Al-Obaidi, attributed this decline to a 7% decline in the value of total exports, with oil exports declining by 11%, falling from $48.7 billion to $43.3 billion.

He pointed out that petroleum derivatives exports increased by 88% to reach $2.1 billion, up from $1.15 billion during the same period in 2024. Non-oil exports also increased by 68%, rising from $1.14 billion to $1.9 billion.

Despite these increases, the decline in the value of exports affected total exports. Meanwhile, the value of imports increased by 7%, rising from $33.3 billion in the first half of 2024 to $35.7 billion in the first half of 2025, according to the report.

Al-Obaidi continued, saying: “With the rise in the value of imports and the decline in the value of exports, the trade balance has declined by this significant percentage. Continued decline in oil prices could lead to a further decline in the value of exports, accompanied by an increase in imports, which could lead to a shift from a surplus in Iraq’s favor to a budget deficit.”

Shafaq.com