Taking a look at the economy of Iraq two things are at the forefront: oil and war. Currently their issues lie in the dropping cost of oil and military expenses battling terrorist group ISIS. Iraq’s parliament recently passed a budget of 119 trillion Iraqi dinars which is equal to be about 105 billion dollars. Their current budget was based on expectations that have not come to fruition so far with a price of $56/ barrel with exports of 3.3million barrels/day. However, this past January they only exported 2.4 million barrels/day and averaged sales at about $41/barrel.
In order to help the slow intake the government plans to to take a few measures. The first is to sell bonds which would be expected. They also plan to postpone payments and borrow from their savings which may hurt in the long run. They will also borrow from the IMF and the World Bank. However, they are in a much better place now than they were about 10 years ago when their public debt was over 300% of GDP while it is closer to 31% today.
With the constant political instability where do you think Iraq’s economy will go from here?