Iraq remains committed to pursuing stability and sustainable growth, despite facing significant challenges in recent years, including war against terrorism and economic fluctuations. The government has prioritized rebuilding infrastructure, improving public services, and fostering economic reforms, with support from international partnerships to foster sustainable development and strengthen human capital.

Iraq’s oil-led growth model has been a source of economic volatility, particularly impacting the country’s growth potential and sustainable development. Continued reliance on oil revenues would leave it vulnerable to new economic risks amid the global transition toward decarbonization and a diminished role of oil as a primary commodity.

Furthermore, Iraq is among the countries vulnerable to climate change impact and shocks both in physical terms (rising temperatures, water scarcity, extreme weather events) and financial vulnerabilities.

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