Abstract Iraq’s economy continued its recovery after the sharp, pandemic-induced recession in 2020 but growth constraints in the oil sector have reemerged. After moderating in 2022, consumer price inflation ticked up in early 2023, fueled by the depreciation of the Iraqi dinar in the parallel market. Fiscal and external account balances benefitted from the oi
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The U.S. has for years been giving Iraq tens of billions of dollars to help with its finances on the specific condition that the country reduces its imports of gas and electricity from Iran eventually to zero. Iran has wielded enormous power over Iraq for a very long time indeed through its various political, economic, and military proxies. Iraq will pay with its own
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Following the recent thaw in relations between Iran and Saudi Arabia, Iraq is strengthening its ties with GCC states. European countries should support this development, which could help Iraq address its domestic challenges For decades, Iraq has been caught in the crossfire of tensions between neighbouring Iran and Saudi Arabia. But following the recent thaw in rel
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On July 3, Saudi Arabia and the United Arab Emirates reached an agreement with Iraq to invest $3 billion each in the country, signaling an expansion of investments by the Gulf states at a time when Iraq continues to seek financing for postwar reconstruction and development of its infrastructure. Iraqi Prime Minister Mohammed Shia Al Sudani said in June that, having “regained it
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A recent barter deal under which Iraq agreed to supply Iran with crude oil and fuel oil in exchange for Iranian gas, points to Iraq's frustration with US sanctions that make it difficult to pay for its gas imports and cause power outages during the scorching summer months. Iran slashed its gas exports to Iraq on Jul. 4, from 45 million cubic meters per day to 20 MMcm/d, cutt
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