According to the CNN broadcaster, the car bomb exploded outside an ice cream shop.
"A car bomb exploded in the busy al Hurriya Square in central Baghdad," police Maj. Ali Mohammed said as quoted by the broadcaster.
According to media reports, the ISIL terrorist group claimed responsibility for the attack, which targeted a gathering of Shias.
The situation in Iraq has been highly unstable for several years due to activities of terrorists, that seized large territories in northern and western parts of the country and are staging regular attacks on Iraqi troops and civilians.
According to the United Nations Assistance Mission for Iraq (UNAMI), a total of 317 Iraqi civilians were killed and another 403 injured in acts of terrorism, violence and armed conflict in Iraq in April 2017 alone.