Hyperinflationary economies as at December 2026

The IMF World Economic Outlook (‘WEO’) report released on 13 October 2026 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, ‘Financial Reporting in Hyperinflationary Economies’. The most significant change and update compared to our publication from May 2026 relates to the following:

• Lebanon is no longer considered to be a hyperinflationary economy for periods ending on or after 31 December 2026.

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 as at December 2026:

• Argentina;
• Haiti;
• Islamic Republic of Iran;
• Malawi;
• South Sudan;
• Sudan;
• Turkey; and
• Venezuela.

The projected three-year cumulative inflation of the economies in the list above is expected to continue to approach or exceed 100% during 2026.

Malawi

The WEO report issued in October 2026 shows that the three-year cumulative inflation is expected to decrease to 98% at the end of 2026 and 93% at the end of 2027. Local data (provided by the National Statistical Office of Malawi) shows a generally decreasing year-on-year inflation trend since October 2025: the three-year cumulative inflation as at September 2026 is still 106%, 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 Malawi as their functional currency should continue to apply IAS 29 for reporting periods ending in December 2026. Entities should monitor developments and consider whether the economy might cease to be considered hyperinflationary during 2027 if the current positive trend continues.

Haiti

The WEO report issued in October 2026 shows that the three-year cumulative inflation is expected to decrease to 96% at the end of 2026 and 76% at the end of 2027. Local data (provided by the Haitian Institute of Statistics and Informatics) shows a decreasing year-on-year inflation trend since October 2025: the three-year cumulative inflation as at September 2026 is 96%, but 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 Haiti as their functional currency should continue to apply IAS 29 for reporting periods ending in December 2026. Entities should monitor developments and consider whether the economy might cease to be considered hyperinflationary during 2027 if the current positive trend continues.

Economies that will no longer be hyperinflationary as at December 2026

Lebanon

The WEO report issued in October 2026 does not include forecast inflation data for Lebanon from 2026 onwards. Local data (provided by the Central Administration of Statistics, Republic of Lebanon) shows a decreasing year-on-year and month-on-month inflation trend since April 2023, and inflation has remained relatively stable since October 2024, with a three-year cumulative inflation as at September 2026 of 80%. Based on the above, entities with the currency of Lebanon as their functional currency should stop applying IAS 29 for reporting periods from 31 December 2026 onwards. Although the projections indicate that Lebanon is not expected to become hyperinflationary in the foreseeable future, it continues to have high rates of inflation. Entities with the currency of Lebanon as their functional currency should carefully monitor developments of inflation during 2026 and 2027.

Other economies to be kept under review in 2026 and 2027

The following economies are not hyperinflationary, but they should be kept under review in 2026 and 2027:

• Burundi; and
• Nigeria.

Burundi

The WEO report issued in October 2026 shows that three-year cumulative inflation is expected to be 77% by the end of 2026, with the expectation that it will further decrease to 44% by the end of 2027. Although the projections indicate that Burundi is not expected to become hyperinflationary in the foreseeable future, it continues to have high rates of inflation. Entities with the currency of Burundi as their functional currency should monitor developments of inflation during 2026 and 2027.

Nigeria

The WEO report issued in October 2026 shows an expected three-year cumulative inflation of 79% by the end of 2026, with the expectation that it will further decrease to 52% by the end of 2027. Although the projections indicate that Nigeria is not expected to become hyperinflationary in the foreseeable future, it continues to have high rates of inflation. Entities with the currency of Nigeria as their functional currency should monitor developments of inflation during 2026 and 2027.

Other potentially hyperinflationary economies (lack of reliable information)

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

• Afghanistan;
• Eritrea;
• Myanmar;
• Syrian Arab Republic; and
• Zimbabwe.

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

Zimbabwe

Zimbabwe was considered hyperinflationary as at December 2025. It transitioned to a new currency (ZWG) in April 2024. Since then, there has been limited data available to conclude whether the change to the new currency has had the desired effect of reducing inflation to a level at which Zimbabwe would no longer be considered hyperinflationary. Entities should carefully consider whether ZWG is their functional currency. Entities that have ZWG as their functional currency should analyse the local situation in assessing whether Zimbabwe is considered hyperinflationary as at 31 December 2026. Impacted entities will need to monitor developments carefully.

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.