Latest news with #Rashidal-Saadi
Shafaq News
29-07-2025
- Business
- Shafaq News
Sales slump across Iraq: Deeper slowdown imminent
Shafaq News – Baghdad Sales across Iraqi markets have fallen by more than half, the Baghdad Chamber of Commerce reported, attributing the decline to weakening construction, investment, and consumer spending. Chamber spokesperson Rashid al-Saadi revealed to Shafaq News that real estate activity has nearly ground to a halt, pulling down sectors such as transportation, building materials, and daily labor—essential pillars of local commerce. Currency exchange offices have also seen a drop in transactions, a trend linked to the dinar's appreciation against the US dollar. He credited the currency's strength to joint measures by the Central Bank of Iraq and international partners, including the US Federal Reserve. Yet the shrinking gap between official and parallel exchange rates has curbed travel and reduced market liquidity, further slowing activity. Economist Ahmed Abedrabbo described the current phase as one of clear economic contraction, driven by eroding purchasing power, limited public expenditure, and lingering inflationary pressures. Although inflation was measured at just 2.2% in the first quarter of 2025, demand remains weak—particularly in non-essential sectors. 'Without swift policy action, this stagnation risks sliding into a deeper recession,' Abedrabbo told Shafaq News, urging structural reforms, targeted incentives, and better fiscal coordination to revive growth. Researcher Ahmed Eid pointed to long-standing systemic flaws—including delayed budgets, inefficient planning, and persistent political interference—as key factors fueling the crisis. 'Corruption and weak institutions have bled public funds and stalled investment,' he said. Eid also warned that Iraq's heavy dependence on consumption, in the absence of strong domestic production, leaves the economy highly vulnerable to external shocks. Offering a monetary perspective, economist Safwan Qusay acknowledged ongoing pressures but emphasized that Iraq still holds over $97B in reserves, enabling the Central Bank to stabilize the exchange rate and support trade. "State-backed housing projects have sustained demand for construction materials and created job opportunities, while Central Bank initiatives continue to assist small businesses and local industry," he added. Despite global inflationary trends, Qusay argued that Iraq's ration card system, food subsidies, and a stable dinar have helped shield domestic prices from broader economic turbulence. "Still, long-term resilience hinges on boosting non-oil revenues, cutting gas flaring, and accelerating investment in power and industry to secure economic self-reliance."
Rudaw Net
09-04-2025
- Business
- Rudaw Net
Iraq to face budget strain as US tariffs trigger oil price drop: Official
Also in Iraq Iraq announces November 11 as date for key legislative elections UN urges accountability after Iraqi detainee dies following alleged torture Iraq arrests 48 for 'witchcraft and sorcery' in crackdown on fraud, human-trafficking US, Iraq move to enhance private sector ties amid new US tariffs hike A+ A- ERBIL, Kurdistan Region - Baghdad's Chamber of Commerce said on Wednesday that the global repercussions of Washington's new tariffs, particularly the resulting drop in oil prices, could significantly undermine Iraq's budget, which for 2025 is based on an assumed oil price of $60 per barrel. 'Every $1 decrease in oil prices costs the Iraqi government around $1 billion annually,' Rashid al-Saadi, the spokesperson of Baghdad's Chamber of Commerce, told Rudaw. US President Donald Trump earlier this month announced a series of 'reciprocal tariffs' on approximately 60 countries, including Iraq, which has been subjected to a 39 percent tariff rate. The announcement triggered a sharp decline in global crude oil demand, with Brent prices falling below $60 per barrel—down from around $75 at the beginning of April. Although oil and gas exports are exempt from the US-imposed tariffs, the overall economic impact remains significant. Saadi noted that annual trade between Iraq and the United States stands at approximately $1 billion, a figure he described as 'not significant.' He stated that Iraq primarily imports foodstuffs, pesticides, fertilizers, and electronic goods from the US. He also revealed that a high-level US delegation, comprising 'leading business figures representing 60 American companies,' is currently visiting Iraq in the wake of the tariffs. 'The delegation is meeting with senior Iraqi officials to boost bilateral trade and strengthen commercial ties between Iraq and the US,' Saadi said. Iraqi Prime Minister Mohammed Shia al-Sudani convened a meeting on Saturday to discuss the new US trade measures. Following the meeting, he issued four directives aimed at strengthening bilateral trade through commercial agencies and sectoral partnerships, as well as renegotiating trade frameworks to ensure mutual benefit. Saadi emphasized that agreements were signed during the US delegation's visit, aimed at 'increasing trade volume and improving facilitation on both sides.' 'These agreements are expected to be implemented gradually,' he added. He also highlighted the strong interest of US companies in investing in Iraq, citing the country's 'geographic, strategic, and geopolitical importance for US policy,' noting that Washington places significant political emphasis on Iraq, which is reflected in its economic engagement. Saadi stressed that 'decisions taken by the federal government certainly apply to the Kurdistan Region and other parts of Iraq,' adding, 'Kurdistan is an integral part of Iraq, so any agreement made with other countries also applies to Kurdistan.' According to Kamaran Bajgr, deputy chair of Erbil's Chamber of Commerce, the new tariffs will affect the Kurdistan Region's exports of tomato paste—its only export to the United States. 'Businessmen in the Kurdistan Region must now seek alternative markets to replace the US,' Bajgr told Rudaw on Saturday.
