Hyperinflationary economies as at December 2025

The IMF World Economic Outlook (‘WEO’) report released on 14 October 2025 provides updated data in respect of current and projected levels of inflation. We have used this data in our assessment of whether an economy is considered hyperinflationary, together with the other qualitative factors in paragraph 3 of IAS 29. The most significant changes from the updates provided in June 2025 relate to the following: 

• Zimbabwe is considered hyperinflationary for 31 December 2025 period ends onwards;
• Nigeria and Egypt should be monitored closely but are currently not expected to become hyperinflationary for 31 December 2025 period ends; and
• Ghana, Lao P.D.R. and Suriname are no longer considered to be hyperinflationary economies for periods ending on or after 31 December 2025.

Hyperinflationary economies

After considering the IMF WEO report and qualitative factors in paragraph 3 of IAS 29, entities with the currency of the following countries as their functional currency should apply IAS 29, ‘Financial Reporting in Hyperinflationary Economies’, as at December 2025:

• Argentina;
• Burundi (updated from June 2025);
• Haiti;
• Islamic Republic of Iran;
• Lebanon;
• Malawi;
• Sierra Leone;
• South Sudan;
• Sudan;
• Turkey;
• Venezuela; and
• Zimbabwe (updated from December 2025).

The projected three-year cumulative inflation of the economies in the list above is expected to continue to exceed 100% during 2025.

Zimbabwe

Zimbabwe was considered hyperinflationary as at June 2024. However, it has since transitioned to a new currency (ZWG). Since then, there has been limited data made available, and entities have applied judgement on whether the currency of Zimbabwe was considered hyperinflationary. The WEO report issued in October 2025 shows an expected three-year cumulative inflation at 8,937% by the end of 2025. Entities with the currency of Zimbabwe as their functional currency, if they did not already do so, should start applying IAS 29 for reporting periods ending on or after 31 December 2025. 

Lebanon

The WEO report issued in October 2025 does not show reliable data from 2025 onwards. The three-year cumulative inflation is 666% at the end of 2025. Local data (provided by Statistics Lebanon) shows a decreasing year-on-year inflation during the end of 2024 and 2025. However, the indicators are currently inconclusive to support this currency moving out of hyperinflationary status. Therefore, entities with the currency of Lebanon as their functional currency will still be hyperinflationary as at December 2025.

Sierra Leone

The WEO report issued in October 2025 shows that the three-year cumulative inflation is expected to decrease to 89% at the end of 2025, and to 35% at the end of 2026. Local data (provided by Statistics Sierra Leone) shows a decreasing year-on-year inflation since November 2023, and a decreasing month-on-month inflation after August 2024. The three-year cumulative inflation as at September 2025 is still 97%, and the other qualitative factors in paragraph 3 of IAS 29 are currently inconclusive to support this currency moving out of hyperinflationary status. Therefore, entities with the currency of Sierra Leone as their functional currency will still be hyperinflationary as at December 2025. Entities should monitor developments to consider whether the economy might cease to be considered hyperinflationary during 2026 if the current positive trend continues.

Economies to be closely monitored in 2025

Nigeria

The WEO report issued in October 2025 shows an expected three-year cumulative inflation of 80% by the end of 2025, with the expectation that it will further decrease to 65% by the end of 2026, and to 66% by the end of 2027. Nigeria rebased its CPI measure in January 2025 and, as a result, no reliably comparable three-year cumulative local data is available. Local data (provided by the Central Bank of Nigeria and the National Bureau of Statistics in Nigeria) after the rebasing is insufficient to conclude that Nigeria is hyperinflationary at this point in time. In addition, the other qualitative indicators in paragraph 3 of IAS 29 support Nigeria not currently being hyperinflationary. However, entities with the currency of Nigeria as their functional currency should closely monitor if the trend of decreasing inflation continues.

Egypt

The WEO report issued in October 2025 shows that three-year cumulative inflation is expected to be 99% by the end of 2025 (63% by the end of 2026). Although the projections indicate that Egypt is not expected to become hyperinflationary in the foreseeable future, it continues to have high rates of inflation. Entities with the currency of Egypt as their functional currency should monitor developments of inflation during 2025 and 2026.

Economies that will no longer be hyperinflationary as at December 2025

Ghana

The WEO report issued in October 2025 shows that the three-year cumulative inflation is expected to decrease 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 decreasing year-on-year and month-on-month inflation, with three-year cumulative inflation as at September 2025 of 84%. Based on the above, entities with the currency of Ghana as their functional currency should stop applying IAS 29 for reporting periods from 31 December 2025 onwards.

Lao P.D.R.

The WEO report issued in October 2025 shows that the three-year cumulative inflation is expected to decrease to 53% at the end of 2025, and to 30% at the end of 2026. Local data (provided by the Bank of the Lao P.D.R.) shows a decreasing year-on-year and month-on-month inflation, with three-year cumulative inflation as at September 2025 of 60%. Based on the above, entities with the currency of Lao as their functional currency should stop applying IAS 29 for reporting periods from 31 December 2025 onwards.

Suriname

The WEO report issued in October 2025 shows that the three-year cumulative inflation is expected to decrease to 61% at the end of 2025, and to 32% at the end of 2026. Local data (provided by Statistics Suriname) shows a decreasing year-on-year and month-on-month inflation, with three-year cumulative inflation as at August 2025 of 89%. Based on the above, entities with the currency of Suriname as their functional currency should stop applying IAS 29 for reporting periods from 31 December 2025 onwards.

Other economies to be kept under review in 2025 and 2026

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

• Angola;
• Sri Lanka; and
• Yemen.

Angola

The WEO report issued in October 2025 shows that three-year cumulative inflation is expected to increase to 84% by the end of 2025 (73% by the end of 2026). Although the projections indicate that Angola is not expected to become hyperinflationary in the next year, it continues to have high rates of inflation. Entities with the currency of Angola as their functional currency should monitor developments of inflation during 2025 and 2026.

Sri Lanka

The WEO report issued in October 2025 shows no reliable data available from 2025 onwards. However, local data provided by the Central Bank of Sri Lanka for Colombo CPI shows that the year-on-year inflation rates significantly decreased during 2023 and remained stable during 2024 and 2025. Sri Lanka is not currently considered to be a hyperinflationary economy, but entities with the currency of Sri Lanka as their functional currency should monitor inflationary developments during 2025 and 2026.

Yemen

The WEO report issued in October 2025 shows that the three-year cumulative inflation is expected to increase to 77% by the end of 2025 (56% by the end of 2026). Although the projections indicate that Yemen is not expected to become hyperinflationary in the next year, it continues to have high rates of inflation. Entities with the currency of Yemen as their functional currency should monitor inflationary developments during 2025 and 2026.

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 with the currency of these countries should consider the information available at the reporting date to determine whether IAS 29 is applicable.

Paragraph 4 of IAS 29 states that it is preferable for all entities that report in the currency of a hyperinflationary economy to apply the standard at the same date; and the standard should be applied as if the economy had always been hyperinflationary.