Chinese customs data revealed a substantial decline in exports to Iraq during the first nine months of 2026, with their value falling to $8.9 billion from approximately $13 billion in the corresponding period of 2025, marking a 31.7% decrease.
Manar Al-Obaidi, head of the Iraq Future Foundation for Economic Studies and Consultancy, said the downturn was concentrated primarily in industrial equipment and construction materials. Imports of machinery and equipment declined by 49%, while iron and steel imports fell by 56%, steel products by 36%, and electrical equipment by 35%.
In an analysis published on social media, Al-Obaidi noted that imports of drilling and grading machinery plunged by 86%, cranes by 97%, and generators by 64%. He said these figures reflect weakening investment activity and a slowdown in construction projects across Iraq.
Air-conditioning imports also fell significantly, dropping from $932 million to $367 million and accounting for approximately 14% of the overall decline in Chinese exports to the Iraqi market.
By contrast, the automotive sector recorded strong growth, with car imports increasing by 84% to $635 million, making vehicles the leading category of Iraqi imports from China for the first time. Consumer goods such as clothing, poultry, and sunflower seeds, meanwhile, remained relatively stable or posted modest gains.
Al-Obaidi said the figures suggest that Iraqi consumer spending remains resilient despite a marked slowdown in investment and construction activity. He added that declining imports of machinery and steel point to a contraction in government spending on infrastructure, while the private sector has yet to fill the resulting gap.
He further noted that the ten largest import categories increased their combined share of total imports from 24.5% to 26.9%, indicating a growing concentration in Iraq’s import structure.
