Hyperinflationary Economies as at December 2025

The IMF World Economic Outlook ("WEO") report published on 14 October 2025 provides up-to-date data on current and projected inflation levels. We have used this data, together with the other qualitative factors in paragraph 3 of IAS 29, in our assessment of whether an economy is considered hyperinflationary.

• Zimbabwe is considered hyperinflationary for periods ending on or after 31 December 2025;

• Nigeria and Egypt should be monitored closely, but are not currently expected to become hyperinflationary as at 31 December 2025; and

• Ghana, the Lao People's Democratic Republic and Suriname are no longer considered hyperinflationary economies for periods ending on or after 31 December 2025.

Hyperinflationary economies

Taking into account the IMF WEO report and the qualitative factors in paragraph 3 of IAS 29, entities whose functional currency is the currency of one of the following countries should apply IAS 29 "Financial Reporting in Hyperinflationary Economies" as at December 2025:

• Argentina;

• Burundi (added to the list as at June 2025);

• Haiti;

• Islamic Republic of Iran;

• Lebanon;

• Malawi;

• Sierra Leone;

• South Sudan;

• Sudan;

• Türkiye;

• Venezuela; and

• Zimbabwe (added back to the list as at December 2025).

The three-year cumulative inflation of the economies listed above is expected to remain above 100% in 2025.

Zimbabwe

Zimbabwe was considered hyperinflationary as at June 2024. Since then, however, it has moved to a new currency (ZWG). Limited data was available after that, and entities made their own assessments of whether the Zimbabwean currency was hyperinflationary. The WEO report published in October 2025 projects three-year cumulative inflation of 8,937% by the end of 2025. Entities whose functional currency is the Zimbabwean currency should, if they have not already done so, start applying IAS 29 for reporting periods ending on or after 31 December 2025.

Lebanon

The WEO report published in October 2025 does not provide reliable data from 2025 onwards. Three-year cumulative inflation is 666% as at the end of 2025. Local data (provided by Statistics Lebanon) indicates that annual inflation will decline at the end of 2024 and during 2025. However, the indicators are not currently conclusive enough to support the currency exiting hyperinflationary status. Entities whose functional currency is the Lebanese currency will therefore still be in a hyperinflationary economy as at December 2025.

Sierra Leone

The WEO report published in October 2025 shows that three-year cumulative inflation is expected to fall to 89% at the end of 2025 and to 35% at the end of 2026. Local data (provided by Statistics Sierra Leone) shows declining annual inflation since November 2023 and declining monthly inflation after August 2024. As at September 2025, three-year cumulative inflation is still 97%, and the other qualitative factors in paragraph 3 of IAS 29 are not currently conclusive enough to support the currency exiting hyperinflationary status. Entities whose functional currency is the Sierra Leonean currency will therefore still be in a hyperinflationary economy as at December 2025. Entities should monitor developments to assess whether the economy will cease to be considered hyperinflationary in 2026 if the current positive trend continues.

Economies to be monitored closely in 2025

Nigeria

The WEO report published in October 2025 projects three-year cumulative inflation of 80% by the end of 2025, 65% by the end of 2026 and 66% by the end of 2027. Nigeria rebased its CPI measurement in January 2025, and as a result reliably comparable three-year cumulative local data is not available. Local data after the rebasing (provided by the Central Bank of Nigeria and the Nigerian National Bureau of Statistics) is not sufficient to conclude that Nigeria is currently hyperinflationary. In addition, the other qualitative indicators in paragraph 3 of IAS 29 support the view that Nigeria is not currently hyperinflationary. However, entities whose functional currency is the Nigerian currency should monitor closely whether the declining inflation trend continues.

Egypt

The WEO report published in October 2025 shows that three-year cumulative inflation is expected to be 99% at the end of 2025 (63% at the end of 2026). Although projections indicate that Egypt is not expected to become hyperinflationary in the foreseeable future, high inflation rates persist in the country. Entities whose functional currency is the Egyptian currency should follow inflation developments in 2025 and 2026 closely.

Economies that will not be hyperinflationary as at December 2025

Ghana

The WEO report published in October 2025 shows that three-year cumulative inflation is expected to fall to 71% at the end of 2025 and to 50% at the end of 2026. Local data (provided by the Ghana Statistical Service (GSS)) shows a decline in annual and monthly inflation, with three-year cumulative inflation of 84% as at September 2025. On this basis, entities whose functional currency is the Ghanaian currency should stop applying IAS 29 for reporting periods from 31 December 2025.

Lao People's Democratic Republic

The WEO report published in October 2025 shows that three-year cumulative inflation is expected to fall to 53% at the end of 2025 and to 30% at the end of 2026. Local data (provided by the Bank of the Lao PDR) shows a decline in annual and monthly inflation, with three-year cumulative inflation of 60% as at September 2025. On this basis, entities whose functional currency is the Lao currency should stop applying IAS 29 for reporting periods from 31 December 2025.

Suriname

The WEO report published in October 2025 shows that three-year cumulative inflation is expected to fall to 61% at the end of 2025 and to 32% at the end of 2026. Local data (provided by Statistics Suriname) shows a decline in annual and monthly inflation, with three-year cumulative inflation of 89% as at August 2025. On this basis, entities whose functional currency is the Surinamese currency should stop applying IAS 29 for reporting periods from 31 December 2025.

Other economies to be monitored in 2025 and 2026

The following economies are not hyperinflationary but should be kept under review in 2025 and 2026:

• Angola;

• Sri Lanka; and

• Yemen.

Angola

The WEO report published in October 2025 shows that three-year cumulative inflation is expected to rise to 84% at the end of 2025 (73% at the end of 2026). Although projections indicate that Angola is not expected to become hyperinflationary in the coming year, it continues to experience high inflation. Entities whose functional currency is the Angolan currency should follow inflation developments in 2025 and 2026 closely.

Sri Lanka

The WEO report published in October 2025 indicates that reliable data is not available from 2025 onwards. However, local data provided by the Central Bank of Sri Lanka for the Colombo Consumer Price Index (CPI) shows that annual inflation rates fell significantly in 2023 and remained stable in 2024 and 2025. Sri Lanka is not currently considered a hyperinflationary economy, but entities whose functional currency is the Sri Lankan currency should monitor inflationary developments in 2025 and 2026.

Yemen

The WEO report published in October 2025 shows that three-year cumulative inflation is expected to rise to 77% at the end of 2025 (56% at the end of 2026). Although projections indicate that Yemen is not expected to become hyperinflationary in the coming year, high inflation rates persist in the country. Entities whose functional currency is the Yemeni currency should follow inflationary developments in 2025 and 2026 closely.

Other potentially hyperinflationary economies (lack of reliable information)

Consistent and reliable inflation data is not currently available for the following countries:

• Afghanistan;

• Bolivia;

• Eritrea; and

• Myanmar.

Entities using the currencies of these countries should consider the information available at the reporting date to determine whether IAS 29 is applicable.