How Oil Prices Drop Will Affect Iraqi Economy?

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Economy in Iraq mainly depends on the oil prices because it exports oil to many countries in the world. There are nearly 7 million employees who work in Iraq oil projects that play a key role in improving the economy. However, political tension started to begin between Iraq and the US, which resulted in a war. The United States requested several nations not to import oil from Iraq due to on-going problems between them. As a result, the Iraqi Government decided to set up a parliamentary economic and investment committee in order to study the impacts of dropping oil prices.

What are the measures taken by Iraqi Government?

Apart from political issues, Iraq is likely to face heavy losses in oil exports due to COVID-19 outbreak. The outgoing Iraqi prime minister recently said that the country is in need of some measures for shaping up the economy. At the same time, the country is now focusing more on controlling Corona Virus crisis that will weaken the economy further. Although the prime minister is reassuring Iraqis regarding the dropping of oil prices, many economic experts are really concerned about the measures taken by the government.

Financial crisis in Iraq

News about dropping of oil prices has already created a shock among many Iraqis because they fear that their living standards may go down. There are some groups who also raised their concern about the issue through social media and other platforms. Employees say that the 2020 financial budget may suffer a lot and payments won’t be properly made. Iraq is currently undergoing a severe financial crisis due to conflicts with the US and other issues, such as COVID-19. There is also a fear among employees that they will lose their jobs if these problems continue for as long as 4 to 5 months.

What to expect in coming months?

The oil prices are reducing in global markets for the past 4 months due to economic recession caused by Corona Virus and lockdown. Iraqi officials say that they are reviewing the markets and making proposals to strengthen the economy to a large extent. Besides that, they are also watching the current situations to make important decisions in coming months. It is really difficult one to predict the economy of Iraq unless the prices of oil rise again. However, the government is unlikely to make any changes at present and the people of Iraq have to wait for months to get the problems solved.