PRIME MINISTER’S ADVISOR: THERE IS NO FINANCIAL CRISIS IN IRAQ AND THE ECONOMIC SITUATION IS UNDER CONTROL

PRIME MINISTER’S ADVISOR: THERE IS NO FINANCIAL CRISIS IN IRAQ AND THE ECONOMIC SITUATION IS UNDER CONTROL.

The Prime Minister’s financial advisor, Mazhar Mohammed Saleh, confirmed on Wednesday that the circulating talk of a financial crisis in the country is “nothing more than rumors,” emphasizing the importance of hedging economic policies in light of the current international circumstances.

Saleh explained that the Iraqi economy relies on oil revenues to finance public expenditures by up to 90%, while government spending constitutes approximately 50% of GDP, which accounts for approximately 85% of total demand and economic activity.

He added, “Current indicators do not point to a financial crisis, thanks to prudent fiscal policies. However, global challenges, such as trade wars and faltering energy markets, require vigilance and caution to maintain the country’s prosperity.”

He pointed out that the oil market is entering the early stages of a price decline cycle, emphasizing that there is close coordination between fiscal and monetary policies to address these challenges through fiscal discipline and controlling revenues and expenditures, in parallel with financing measures that do not negatively impact public spending.

Saleh explained that Iraq has accumulated experience in dealing with oil cycles since 2014, and has succeeded in ensuring economic stability by providing salaries, pensions, and social welfare, supporting agriculture, and strengthening partnerships with the private sector within the government’s reform program.

He concluded by saying, “Securing liquidity to meet the country’s needs is a top priority. There is successful central financial management of this issue, and there are no current concerns in this regard.”