Traffic congestion drains Iraq's economy, hampers growth

Shafaq News

28-01-2025

Shafaq News/ Traffic congestion in Iraq's major cities has become a significant obstacle to economic growth, affecting productivity, increasing costs, and straining infrastructure. Iraq's Strategic Human Rights Center (SHRC) warns that the issue is not only a logistical challenge but a critical economic and environmental concern that demands urgent action.
Economic Impact of Congestion
According to the center's head, Fadel Al-Gharawi, the persistent traffic jams are reducing worker productivity, with employees spending hours stuck on congested roads instead of contributing to their workplaces.
Findings from the 2023 Global Traffic Scorecard reveal that workers in heavily congested cities lose between 100 and 150 hours annually in traffic delays, causing economic losses equivalent to 2-5% of GDP in many countries.
The World Bank has also reported that workers facing daily delays of up to an hour experience a 15% decline in productivity.
Businesses are equally impacted, with traffic-related delays disrupting supply chains and reducing competitiveness. Economic reports indicate that late deliveries and logistical inefficiencies result in a 10-20% loss in potential business opportunities, further straining the economy.
In Iraq, the situation is equally dire. Al-Gharawi estimates that traffic congestion costs the country's economy between $1 billion and $2 billion annually. These losses arise from wasted fuel, increased vehicle maintenance, and time inefficiencies.
Environmental and Health Consequences
The gridlock on Iraq's roads is not just an economic issue; it also contributes to environmental degradation and public health challenges. Idling vehicles emit higher levels of greenhouse gases, worsening air pollution. Al-Gharawi pointed out that 'prolonged traffic congestion increases respiratory illnesses and raises environmental costs.'
Studies by the United Nations confirm that areas with heavy congestion report a 30% higher prevalence of respiratory diseases compared to less crowded regions. In Iraq, where residents in some areas spend over three hours daily in traffic, transportation costs have risen by 40%, placing additional financial pressure on households.
Current Efforts and Needed Reforms
The Iraqi government has taken steps to address the issue by building bridges, and tunnels, and expanding key roads. However, Al-Gharawi emphasized that these efforts need to be part of a broader, strategic approach to make a significant impact.
He suggested several measures to alleviate congestion, including 'phasing out older vehicles, constructing ring roads around cities, and building highways that meet international standards to improve connectivity between provinces.' Additionally, he stressed the importance of investing in sustainable public transportation to reduce reliance on private cars.
'Smart traffic management systems and improved public transit infrastructure are essential to easing congestion and mitigating its effects on the economy and environment,' Al-Gharawi said.
A Hidden Cost to GDP
Transportation inefficiencies tied to traffic congestion currently consume an estimated 1.5% of Iraq's GDP, according to the World Bank. This financial burden highlights, according to Al-Gharawi, the urgent need for coordinated action to modernize infrastructure and adopt sustainable policies.
'The delays caused by congestion also disrupt economic productivity across various sectors, from manufacturing to logistics…The inefficiencies are compounding over time, making it clear that addressing traffic is no longer just about convenience—it's about economic survival,' he stated.
'Addressing traffic congestion is critical to Iraq's future. It's not just about easing daily commutes—it's about securing a sustainable path for economic growth and environmental stability.' He concluded.