Iraq among world’s cheapest countries despite weak purchasing power

Shafaq News- Baghdad

Iraq ranked among the world’s least expensive countries in Numbeo’s 2026 Cost of Living Index, recording 28.4 points, well below Jordan at 39.4, Saudi Arabia at 43.9, and the United Arab Emirates at 55.2.

The index compares prices for groceries, transportation, utilities, restaurants, and rent against New York City as a global benchmark.

Economic expert Mohammed Al-Hassani told Shafaq News that Iraq’s low ranking does not necessarily indicate better living conditions, noting that many families continue to struggle with the gap between salaries and daily expenses while also paying additional costs for private electricity generators, healthcare, transportation, and water access.

“The real issue is whether incomes can sustainably meet household needs.”

Iraq’s relatively low living costs could come under pressure if oil revenues weaken or import prices rise amid regional instability, he warned.

The International Monetary Fund projected Iraq’s inflation rate at around 3% in 2026 and also cautioned that the country remains exposed to oil market volatility and fiscal pressures tied to crude revenues, while the World Bank said Iraq’s dependence on oil continues to constrain long-term economic stability and private-sector growth.

Read more: Iraq’s delicate maneuver: Boosting revenue without crushing consumer power