Economist: Iraq is on the brink of an economic crisis, and government decisions have exacerbated the risks.
Economist: Iraq is on the brink of an economic crisis, and government decisions have exacerbated the risks.
12-20-2025
Information/Special..
Economic expert Ali Al-Atabi warned today that Iraq is approaching a severe economic crisis, stressing that the policies followed during the past years lacked a sound economic vision and contributed to deepening financial imbalances.
Al-Atabi told Al-Maalouma News Agency that “the country is on the brink of a real economic crisis, as a result of the government’s work over the past three years with a policy that cannot be described as economic, as it was dominated by a political character and attempts to achieve superficial success at the expense of the citizens’ livelihood.”
He added that “the increasing domestic borrowing has put Iraqi banks under great pressure and reduced their ability to finance the private sector, which has negatively affected market activity and investment,” noting that “lowering the dollar exchange rate is a grave mistake at this time, because it is a drain on the monetary reserve without achieving real economic stability.”
Al-Atabi explained that “the government has not properly invested in border and customs outlets to address the financial crisis, despite them being an important resource that can reduce dependence on oil,” indicating that “four years is not enough to find a real policy for diversifying resources in the absence of planning and institutional reform.”
He concluded by saying that “continuing with the current approach will only complicate the economic landscape, unless bold decisions are made to restore balance to monetary and fiscal policy and put the Iraqi economy on a reform path that protects both the state and its citizens.”
almaalomah.me
