The devaluation of the dinar .. did not save the Iraqi industry

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[size=52]The devaluation of the dinar .. did not save the Iraqi industry[/size]

[size=45]The percentages of contribution of the different sectors to the country’s GDP are one of the most prominent testimonies to the extent of success and failure of these sectors. The failure of the industrial sector in Iraq is clearly visible after its stability under 3%, according to figures that can be described as “optimistic” by the Ministry of Planning.[/size]
[size=45]The contribution of the industrial sector to the GDP in 2019 amounted to nearly $3 billion out of a total GDP of $222 billion, which makes the industry’s contribution to the GDP less than 1.5 percent.[/size]
[size=45]By excluding the year 2020, which is a year outside the possibility of comparison due to the closure of Corona, the industry’s contribution to the GDP appears to be 2.8 billion dollars, despite the increase in the price of the dollar and the devaluation of the Iraqi dinar, which the Ministry of Finance at the time justified as a step that will revitalize the local industry and make it more competitive compared to commodities. Imported, but the contribution of the industry has decreased 10%.[/size]
[size=45]The devaluation of the dinar did not save the industry![/size]
[size=45]Economic researcher Manar Al-Obaidi says in a press clarification, “Although one of the objectives mentioned in changing the exchange rate is to increase the contribution of the industrial sector to the GDP, by comparing the figures achieved in 2021 with previous years, we find that there is no real increase in the domestic product, but rather a decline.” In the value of the industrial sector’s contribution to the GDP, from 2.95 trillion dinars in 2019 at current prices, compared to 2.8 trillion dinars in 2021.”[/size]
[size=45]He added, "This means that no growth has been achieved in this sector despite the change in the exchange rate," noting that "a change in the exchange rate alone cannot increase the contribution of the industrial sector to the domestic product. Rather, it should have been accompanied by a set of reforms, including providing fuel to factories. Facilitating the procedures for registering factories and industrial projects and setting a strategic plan for distributing the geographical area of ​​factories across Iraq.[/size]
[size=45]He explained that "the Ministry of Finance failed in this goal, which it considered one of the most important goals in supporting the industrial sector and the domestic product."[/size]
[size=45]The contribution of the industry has not yet risen[/size]
[size=45]In the latest census of the Iraqi Ministry of Planning, it revealed that the contribution of the industrial sector to the country’s GDP amounted to 3% during the year 2020, which is a low level compared to its contribution before the siege, which amounted to 12%, which means that the contribution of the industrial sector in Iraq has declined 75% since the siege .[/size]
[size=45]And the Central Bureau of Statistics of the Ministry said in a report that “the industry in Iraq has witnessed fluctuation and instability since the beginning of its development in the seventies, between rise and decline to witness progress in the period between 1989 and 1990 to reach 12%.”[/size]
[size=45]He added that "the industry witnessed a significant decline during the years of the economic embargo imposed on Iraq in August 1990 until 2003, as the industry's contribution to local production amounted to less than 2% in 1997."[/size]
[size=45]He pointed out that "the industrial sector has not witnessed a significant development in its contribution to the gross domestic product within the activity of manufacturing industries, since that date due to the almost total dependence on oil production."[/size]
[size=45]As for the period of the Corona pandemic, the report stated, “The percentage of GDP increased by 1% in light of the decline in global oil prices, to reach 3% in 2020.”[/size]
[size=45]While the industry's contribution to the GDP in 2003 reached 2%, it has been at this level for 18 years and has never progressed.[/size]
[size=45]The number of factories affiliated with public sector companies in Iraq is about 227, of which only 140 are operating, according to data from the Ministry of Industry and Minerals, and 87 others are suspended.[/size]
[size=45]As for the number of fully established industrial projects, it amounts to 20,415 projects, and only 2,248 projects are operating, which means that 90% of industrial projects are suspended.[/size]
[size=45]The low contribution of the industry to the GDP explains the reason why oil is the dominant one in the GDP, as it reached during 2020 57 percent, while the activity of wholesale and retail trade and hotels came second in terms of contributing to the GDP by 8.05 percent.[/size]
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