Iraq's top advisor to speculators: We're not in financial trouble
Saleh told Shafaq News that Iraq relies on oil revenues to finance about 90% of public expenditures, while government spending constitutes roughly 50% of GDP, noting, 'This spending drives around 85% of total demand in the economy.'
He cautioned that Iraq must remain vigilant amid global trade tensions and energy market disruptions, noting that oil prices seem to be entering a new downturn. This, he said, has led to closer coordination between the country's fiscal and monetary authorities. 'Iraq has weathered similar oil cycles since 2014 and succeeded in preserving economic stability,' he added.
The economic expert further pointed out that the government is enforcing stricter fiscal discipline on revenues and expenditures, coordinating with the central bank to cover deficits without disrupting essential outlays. Ensuring sufficient liquidity to meet national needs remains a top priority.
Earlier, the Parliamentary Finance Committee warned of a potential future crisis amid falling oil prices and inadequate safeguards to cushion Iraq's economy.
Economic experts blamed the Ministry of Finance and the Central Bank for weak monetary circulation and declining public trust in the banking sector. Official data showed that Iraq's money supply has reached around 127 trillion dinars (96.52 billion USD), with 70% of it held outside the banking system. Additionally, oil revenues reportedly dropped by 15% in April, compounding pressure on strategic reserves.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Shafaq News
2 hours ago
- Shafaq News
Iraq bans Chinese-made Toyota vehicles
Shafaq News – Erbil The Iraqi government banned on Monday, the import of Toyota vehicles manufactured in China, citing concerns over their suitability for local conditions. At a press briefing, Sardar Hussein Al-Bibani, head of Toyota's Iraq branch, noted that these models were designed specifically for China's climate and environmental conditions. 'They do not meet the demands of Iraq's distinct climate and road infrastructure,' he emphasized. The ban follows last month's announcement by the Central Organization for Standardization and Quality Control that Iraqi vehicle standards will become mandatory starting early 2026. Operating under the Ministry of Planning, the organization emphasized that the new import regulations aim to align with market needs and safeguard consumers.
Iraqi News
3 hours ago
- Iraqi News
Iraq increases capacity of Bismayah power plant
Baghdad ( – The Iraqi Prime Minister, Mohammed Shia al-Sudani, said on Monday that the Bismayah Combined Cycle Power Plant, located southeast of Baghdad, has raised its output capacity to 5,000 megawatts. During the inauguration of the power plant's expansion project, al-Sudani stated that the additional unit will increase the plant's production by 300 megawatts, raising its total capacity to 5,000 megawatts, according to a statement released by the Prime Minister's Office (PMO). The Iraqi Ministry of Electricity recently mentioned that energy production in Iraq has hit an all-time record level of more than 28,000 megawatts. The Iraqi Minister of Electricity, Ziyad Ali Fadel, said that the ministry has reached agreements with General Electric (GE) to develop power facilities with a capacity of 24,000 megawatts, as well as with Siemens, a Germany-based company, for an additional capacity of 14,000 megawatts. Fadel also stated that a deal with Shanghai Electric Group will be reached shortly to generate 10,000 megawatts of electrical power to fulfill the country's growing needs. While Iran has stopped delivering the gas needed to run several power plants in Iraq, the Iraqi government is working to implement steps aimed at addressing the present electricity crisis this summer and ensuring a steady supply of electricity.
Shafaq News
7 hours ago
- Shafaq News
Iraq's May public spending, domestic debt edge down
Shafaq News – Baghdad Iraq's public spending and domestic debt both declined in May, according to Central Bank of Iraq (CBI) data released on Monday. Public expenditure stood at 9.35T IQD ($6.67B), down 1.48% from April's 9.49T IQD ($6.77B) and 12.4% lower than the 10.68T IQD ($7.61B) recorded in May 2024. Domestic public debt fell marginally to 85.50T IQD ($60.95B) from 85.54T IQD ($60.98B) in April, but was up 8.56% year-on-year from 78.18T IQD ($55.70B) in May 2024. According to data from Trading Economics, Iraq's government debt is expected to reach around 44% of GDP by the end of 2025 amid volatile oil revenues. Oil revenues still account for around 85% of the government budget and over 90% of export earnings, making Iraq highly sensitive to international price fluctuations.
