A US report warns of risks facing Iraq as a result of the decline in oil prices.
A US report warns of risks facing Iraq as a result of the decline in oil prices.
2025-07-20 05:05
Shafaq News – Washington / Baghdad
Standard & Poor’s Global Commodity Insights, an energy and commodities company, revealed that Iraq is the most vulnerable among oil-producing countries due to the decline in oil prices.
The company said in a report seen by Shafaq News Agency, “The financial challenges resulting from weak oil prices could have far-reaching consequences for oil-exporting countries, especially those that have experienced a slowdown in non-oil development.”
She added, “The most vulnerable is Iraq, which relies on oil revenues to finance the majority of its budget, including paying the salaries of millions of government employees.”
It expected that “Iraq’s foreign exchange reserves will decline sharply, from $102.3 billion in 2023 to $87.05 billion by the end of 2024 and to $70 billion by the end of 2025, placing them close to the level that would likely require emergency action.”
She noted that “the rapid decline in oil prices could lead to a more rapid decline in reserves and may require further cuts in public sector spending, which could spark protests against the government.”
shafaq.com
