Iraq: A new opportunity set
Low oil prices in the global market drove Iraq’s economy to the brink of collapse last year, but with markets growing more optimistic in regard to the outlook for oil demand in the coming months, Baghdad has been given a chance to rein in its widening deficit (albeit gradually), and to ease its financing strains. This week we discuss Iraq’s economic outlook, focusing on:
- How the 2021 budget reflects the government’s drive to reduce its fiscal imbalance through diversification and expenditure cuts.
- The state’s reliance on the Central Bank of Iraq to finance its deficit spending due to a lack of overseas borrowing and a vulnerable domestic financial system.
- Mustafa al-Kadhimi’s attempt to build a political legacy, with just under six months of his current term left.
Florence Eid-Oakden, Ph.D, Chief Economist
Ghalia Al Bajali, Leila Lajevardi, Analysts
The Country Views series shines the spotlight on specific developments in MENA countries, analysing them from a local perspective to deliver forward looking views for businesses and investors.
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