Economic: Falling oil prices threaten the Iraqi budget.
Economic: Falling oil prices threaten the Iraqi budget.
1-5-2026
Information/Baghdad…
Economic expert Ahmed Hadhhal confirmed on Monday that the decline in global oil prices is placing significant pressure on the Iraqi budget, especially since the economy relies on oil for over 90% of its revenues.
Hadhhal told the Information Agency, “This decline exposes the government to the risks of reducing spending, resorting to borrowing, or postponing some obligations, which will negatively impact infrastructure projects, job opportunities, and public services.”
He pointed out that “Iraq possesses short-term reserves at the Central Bank, but these are insufficient to withstand long-term shocks,” emphasizing the need to diversify the economy, revitalize non-oil sectors, reform the tax system, and link spending to productivity to reduce waste and ensure financial sustainability.
It is worth noting that oil exports constitute more than 90% of Iraq’s public revenues, making the national budget highly sensitive to fluctuations in global crude oil prices.
The price of a barrel of oil in the general budget law was set at $70, while the actual price at the time was higher than $70.
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