How was the year 2023 for Iraq economically, and what were the calamities that struck the citizen?

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[size=52]How was the year 2023 for Iraq economically, and what were the calamities that struck the citizen?[/size]

[size=45]Ali Al-Hamdani[/size]
[size=45]Iraq entered the year 2024 burdened with economic and financial problems and the conflict with the United States of America, which will have negative repercussions that may lead the country to approach “the brink of economic and financial collapse” in 2025, according to what a number of economists spoke to (Al-Mada), who counted the year 2023 is “one of the most difficult years economically” due to international pressure, especially from the US Treasury Department.[/size]
[size=45]The year 2023 witnessed many economic changes that led to Iraq being harmed economically and financially, including a decline in Iraqi oil imports due to the cessation of the export of Kurdistan oil via Turkey, as well as the OPEC Plus agreement, which led to a reduction in production in order to maintain high prices, which led to damage to Iraqi oil imports. In addition to the continued disruption of the industrial and agricultural sectors and the decline of the private sector, whose contribution is negligible, according to economic researcher, Omar Al-Halbousi.[/size]
[size=45]In addition to this - according to what Al-Halbousi told Al-Mada - the expansion of public finances, which has caused an increase in the financial risks for Iraq and an increase in the deficit in the general budget with the continued fluctuations of the Iraqi dinar exchange rate, which leads to Iraq losing billions annually to fill the gap except for the two prices, which go The pockets of certain parties own the banks that control the currency selling window, which has become a window for wasting Iraqi oil imports.[/size]
[size=45]Al-Halbousi confirms that the increase in Iraq's debt, which reached 152 billion dollars, exacerbated Iraq's financial and economic problems, especially after the exhaustion of the financial surplus achieved in 2022, leading us to enter the new year with a large deficit.[/size]
[size=45]It shows, especially after the approval of the tripartite budget, which was in violation of the rules of public finance, the significant expansion of consumer expenditures and the reduction of investment spending, and the government’s inability to implement the budget due to the lack of cash in the banks, as well as the World Bank’s rejection of the solutions to address the deficit presented by the government, as they would incur more disasters for Iraq. Financial and economic.[/size]
[size=45]He continues that the Iraqi citizen was harmed by many of the economic problems that struck Iraq, which led to a decline in the citizen’s purchasing power and the Iraqi market entering a state of near economic recession.[/size]
[size=45]In addition to the sanctions imposed by the US Treasury on 14 banks, this exacerbated the problem of the exchange rate, which the banks exploited to achieve the largest financial gains at the expense of harming the Iraqi citizen, who suffers greatly to obtain the dollar.[/size]
[size=45]He adds that during the year 2023, Iraq went through the first steps of economic setback, which exacerbated Iraq's financial and economic problems due to reliance on oil as a single source, which is considered economic suicide in light of the absence of economic diversification and the failure to exploit oil imports to carry out economic development.[/size]
[size=45]He continues, “So we have entered the new year and the country is burdened with economic and financial problems and the conflict with the United States of America, which will have many negative repercussions on Iraq, bringing it closer to the brink of economic and financial collapse in 2025.”[/size]
[size=45]Al-Halbousi believes that this fall will be “terrible” if the situation is not addressed politically, economically, and security, and in the absence of an economic vision and lack of planning to save Iraq from the brink of a major collapse, which has become imminent after the exacerbation of many economic and financial problems and their intertwining in light of the government and its institutions’ failure to address the situation to avoid “ “Economic catastrophe,” as he described it.[/size]
[size=45]But many development opportunities![/size]
[size=45]The Iraqi economy did not advance or revive in 2023 despite the availability of many development opportunities as a result of the rise in global oil prices, according to the economic expert, Ahmed Eid, explaining that the gas associated with oil extraction operations was not invested, in addition to the failure to provide real development projects that would contribute to raising... The gross domestic product capacity of the Iraqi state.[/size]
[size=45]Iraq is still ranked among the most corrupt countries in the world in the Global Corruption Perceptions Index, as it ranked 157th in the report issued by Transparency International in 2021.[/size]
[size=45]Eid added during his talk to (Al-Mada) that corruption in Iraq continues to reflect a struggle to share the rentier economy between political parties and forces that enjoy power and influence, as well as the recovery of the economic offices of militias, parties, and influential figures who possess spider networks to manage corruption resources.[/size]
[size=45]At a time when much of the lost money remains unknown, as is the case in the deal of the century and many suspicious operations, while the Iraqi dinar in 2023 witnessed a major setback caused by weak management and lack of will, which lost citizens’ confidence, according to Eid, “in the plans of the ruling regime in Baghdad that... His projects serve parties and politicians far from providing real development that achieves the well-being of the people or provides them with their most basic rights of service and care.”[/size]
[size=45]“One of the most difficult years economically”[/size]
[size=45]In turn, the economic expert, Abdul Rahman Al-Sheikhli, points out that the year 2023, despite achieving some achievements on the economic level, including the agreement with the American side last February to facilitate making payments for imports from China, was “one of the most difficult years economically for Iraq,” because International pressure, especially from the US Treasury Department.[/size]
[size=45]Al-Sheikhli explains to (Al-Mada): Last July, the US Treasury blocked 14 Iraqi banks from trading in the dollar currency due to suspicions in the operations of those banks.[/size]
[size=45]He continues, and in December of last year, the Central Bank allowed small merchants to finance their imports from Turkey in the currency (lira), and an agreement was also reached with the Abu Dhabi Import Bank (in dirhams), which eased the pressure on demand for the dollar.[/size]
[size=45]As for the issue of importing dollars from abroad, the Central Bank created an outlet for the parallel market and reduced the severity of the black market that speculators and some greedy merchants were exploiting.[/size]
[size=45]As for the oil industry, the Karbala refinery’s production of 140 thousand barrels per day was a strategic goal that bodes well for the future, which reduced foreign imports.[/size]
[size=45]Al-Sheikhli continues, and last June, the Ministry of Oil completed the sixth licensing round under the slogan, “Oil is the property of Iraq,” and that 11 exploration blocks in Najaf, Anbar, and Nineveh were subject to the Iraqi will.[/size]
[size=45]Last July, an agreement was reached with the French company Total to invest in gas, oil and renewable energy projects amounting to $27 billion.[/size]
[size=45]High-octane gasoline was produced from the Karbala refinery last September, and in the same month the production of one million standard cubic feet per day of gas was reached from the Halfaya gas field, and a production of 150 thousand barrels per day was reached from the Baiji oil refinery.[/size]
[size=45]Al-Sheikhli notes that despite all of the above and the current government’s use of all its tools to maintain the price of the dollar compared to the Iraqi dinar, the dollar has continued to fluctuate due to the unilateral Iraqi income from oil revenues.[/size]
[size=45]At the conclusion of his speech, Al-Sheikhli expressed his hope that the year 2024 will be the year of revitalizing industry and agriculture and supporting Iraq’s revenues.[/size]
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