What Changes The Iraqi Economy Has Undergone?

Abstract

Research and economic studies in all their aspects show that uncertainty has significant consequences in all areas of the economy. In recent years, the Iraqi economy has gone through difficult economic conditions as a result of exacerbations of structural imbalances and the global health crisis. The global economy witnessed a significant recovery in 2021 as a result of the improvement in the health situation, the increase in vaccination rates around the world, and the decline in Covid-19 infections. Economic growth in Iraq has begun to gradually recover in the wake of the downturn caused by the Corona pandemic during the past year, partly due to the increase in non-oil economic activity. As for the recovery of the oil sector, it has had the most prominent impact in changing the course of the Iraqi economy, and it is expected that the improvement in the conditions of the global oil market will lead to enhancing economic growth in the medium term and achieving financial surpluses that contribute to reducing the accumulated debts. Although the economic conditions in Iraq have gradually improved with the recovery of international oil markets, this recovery is fraught with major risks posed by structural obstacles, including public investment management restrictions that affected the provision of public services, the slow repayment of overdue debts, especially those related to public wages, and the burden of owned banks. The state and the Central Bank of Iraq’s sovereign debt burden. In addition to the fragility of the political situation, the weakness of the health care system, and the rampant financial, administrative and political corruption in various state institutions. In order to orient ourselves better, we need to look carefully at ways of perceiving the challenges facing the Iraqi economy as a necessary condition for the country’s development. However, despite the improvement in the prospects of the Iraqi economy and the recovery of global oil markets, the repercussions of the Corona virus and the challenges of climate change constitute new risk factors. The economy is expected to recover gradually against the backdrop of high oil prices and an increase in the production quotas of the “OPEC +” alliance, which is scheduled to be phased out in 2022. Oil GDP will be the main engine of growth in the medium term. There is a lot of research on the state of Iraq from international and local organizations and institutions. Everyone has proven that the most serious challenge for development in Iraq is insecurity. In fact, with this material we have to answer the main question: what is the country facing and what problems are there to solve?