The Repercussions of Oil Price Fluctuations on Iraqs Gross Domestic Product Analytical Study for the Period between 2000-2019

Abstract

From the results obtained with regard to the fluctuations in oil prices, there is a significant impact of oil prices on the overall economy, expressed in gross domestic product, as in a case like Iraq, the rise in oil prices leads to an increase in export earnings, and thus an increase in the volume of foreign trade, and when oil prices rise, the This leads to an increase in the flow of foreign currency represented in the US dollar to the national economy, and this causes a high rate of inflation on the one hand and an increase in the demand for imports on the other hand, which leads to an expansion in government spending, and high oil prices encourage investment (especially in the sector). Based on the statistical results and the conclusions reached, it is noted that the price of oil has a significant impact on the gross domestic product as the most important overall indicator of the Iraqi economy, which makes the latter hostage to its behavior in the global oil market. Finally, it should be noted that the uncertainty surrounding the oil market, which made it difficult to predict oil prices, has become necessary for the economic authorities in Iraq to: We take the issue of searching for new financial resources outside the oil sector seriously, so the study recommends the need to expedite the adoption of a policy aimed at reducing dependence on oil revenues in the national economy, and strive to diversify non-fuel exports, and support the pillars of the national economy to mitigate the effects of the external shock.