ARTICLE AD BOX
Achievements And Challenges
Economic 07/20/2025 Yasser Al-Mutawali While the country is witnessing real achievements in various areas of the economic and service sectors, due to efficient reform policies and clear trends toward stimulating the economy and development,
economists are busy these days searching for ways to confront the expected global financial crisis, which is a periodic crisis facing the global economy. Therefore, experts are seeking to mitigate its effects on the reality of the Iraqi economy.
Perhaps it is useful to emphasize that any warnings issued here and there must be taken into account and benefited from, to avoid the damage that may result from them.
Today, the International Monetary Fund (IMF) issued a warning regarding Iraq's worsening fiscal deficit, due to objective reasons related to geopolitical changes taking place around the world, which have painful economic repercussions, according to its latest report this week.
Therefore, it is necessary to focus on stimulating income-generating productive sectors,
while reducing unnecessary expenditures in order to overcome the crisis phase and its usual cycle.
The IMF's warnings called on Iraq to review its spending policy and rationalize it with measures that are difficult to implement, as they raise complex social problems.
In order to preserve and sustain the achievements made, austerity measures must be taken, spending must be reduced, and rapid income-generating economic sectors must be stimulated and diversified.
Regardless of the accuracy of the warnings, it has become necessary not to ignore them and to take them seriously,because they are important indicators whose effects must be guarded against.
We see in them an opportunity for the government to implement more radical reforms in fiscal policy,
to confront the dire effects of the expected financial crisis.
Perhaps it is useful to point out that Iraq, as a rentier country, will be at the forefront of the countries affected and most affected, especially if oil prices fall below the hypothetical price planned for the budget.
This reality requires the government to review current spending plans, reduce all non-essential expenditures, and boost non-oil revenues by revising tax and customs duties, reforming the personal income tax, creating private sector jobs without relying on government jobs, and regulating the import of non-essential goods.
It is perhaps worth emphasizing once again that ignoring the warning, regardless of the accuracy of the information contained in the report,remains a matter that requires serious consideration. https://alsabaah.iq/117658-.html
English (US) ·