GDP growth in Iraq slowed to 1.1% in 2017, a marked decline compared to the previous two years as consumption and domestic investment declined due to civil violence and the slow oil market. The Iraqi government received the third tranche of funding from its 2016 Preparedness Agreement with the International Monetary Fund in August 2017, which aims to stabilize its financial resources by promoting improved financial management, economic reform and cost reduction. In addition, in late 2017, Iraq received more than $ 1.4 billion in funding from international lenders, part of which was generated by issuing $ 1 billion worth of bonds for reconstruction and rehabilitation in the liberated areas of Dahesh.

The main investment and diversification of the sector are key to long-term economic development in Iraq and require an enhanced business climate while strengthening legal and regulatory oversight to enhance private sector participation. The state-controlled oil sector dominates the oil sector, which provides nearly 85% of revenues Government and 80% of foreign exchange earnings, a major determinant of the economy's wealth.

Iraq is making slow progress in enacting laws and developing institutions to implement economic policy and political reforms are still needed to soothe investor fears about uncertain business climate. The Government of Iraq is keen to attract more foreign direct investment, but faces a number of obstacles.

Iraq has the potential to be prosperous with its long commercial history, deep commercial traditions and vast natural resources as it has the world's second-largest proven oil reserves.