Iraq’s trade performance showed a noticeable decline in the second quarter of 2025, the Central Bank of Iraq (CBI) confirmed on Monday. Analysts highlighted that both exports and imports fell, signaling challenges for the national economy. Iraq’s trade performance continues to attract close attention from investors and policymakers.
CBI data revealed that total exports dropped to $23.285 billion in Q2, down from $24.112 billion in the first quarter. Crude oil exports accounted for $20.956 billion. Meanwhile, petroleum products brought in $981 million, and other exports contributed $1.347 billion. These figures show that crude oil remains Iraq’s primary export commodity.
Imports also decreased in the second quarter. Total imports reached $17.534 billion, compared with $18.158 billion in Q1. The private sector dominated, with $15.993 billion in imports. Government imports accounted for $1.813 billion. Observers noted that the decline could reflect cautious domestic spending and slower economic activity.
Economists explained that Iraq’s trade performance reflects the economy’s dependence on oil revenues. “Export and import fluctuations highlight the need to diversify trade and strengthen non-oil sectors,” a market analyst said. Furthermore, global oil prices continue to influence trade balance and fiscal stability.
Sector-specific patterns offer additional insights. Petroleum dominates exports, while machinery, consumer goods, and raw materials drive imports. Changes in demand and prices affect both private and government purchasing decisions. Analysts also emphasized that the private sector is adapting to market conditions, which may support future recovery.
CBI officials stressed the need for strategic reforms. “Iraq’s trade performance will improve if investment in infrastructure and local production increases,” a spokesperson said. Policies encouraging private sector growth and stabilizing government procurement could further enhance trade activity.
Looking ahead, experts suggested easing trade regulations, supporting small and medium enterprises, and boosting domestic manufacturing. Such measures could increase both exports and imports, ensuring sustainable economic growth.
Overall, Iraq’s trade performance in Q2 2025 indicates challenges from both domestic and international factors. While crude oil continues to dominate exports, the country must pursue diversification strategies to stabilize its economy.
