Al-Marsoumi: The Iraqi economy faces serious challenges that require urgent reforms.
Al-Marsoumi: The Iraqi economy faces serious challenges that require urgent reforms.
5-22-2025
Al-Maalouma/Baghdad..
Economic expert Nabil Al-Marsoumi confirmed, on Thursday, that the Iraqi economy is facing serious challenges that require urgent reforms.
Al-Marsoumi said in a tweet followed by Al-Maalouma Agency, that “the International Monetary Fund warned in a report issued this May that Iraq is heading towards a difficult economic year in light of a continuous rise in public expenditures, especially those related to employee salaries and energy purchases.
” He added, “The report indicated that 55% of the electricity produced in Iraq is wasted due to theft and illegal connections, leading to significant financial losses that burden the national economy.”
He explained that “the report clearly indicates an expected decline in non-oil economic growth during 2025, amid exacerbating weaknesses in the structure of the Iraqi economy due to increased employment in the public sector and the inflationary wage bill, in addition to the heavy reliance on oil revenues.”
He pointed out that “the International Monetary Fund called on the Iraqi government to implement urgent reforms, including controlling the public finances, reducing current expenditures, especially public sector salaries, in addition to expanding the tax base and increasing non-oil revenues to achieve sustainable economic stability.”
This warning comes at a time when the Iraqi economy is suffering from accumulated challenges, in light of fluctuating oil prices and the lack of effective diversification of revenue sources, making economic reforms an urgent necessity that cannot be postponed.
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