Prospects of the Iraqi Economy: A Critical Analysis by Economist Saleh Rashid
On March 4, 2025, economist Saleh Rashid offered a pointed analysis of the future of the Iraqi economy, highlighting how political quotas have undermined the efficacy of economic decision-making within the country.
Rashid noted that significant mismanagement exists within both the Central Bank and the Ministry of Finance, leading to a disconnect between fiscal and monetary policies. This disjunction has created a fragile financial situation for Iraq, as evidenced by ongoing liquidity challenges.
He stated, “A systematic alignment of expenditures and revenues is essential to mitigate these issues,” emphasizing the need for coordinated financial planning.
According to Rashid, external factors, including market fluctuations and direct influences on oil prices—currently at about $70—are expected to exacerbate Iraq’s financial difficulties, particularly through increased reliance on internal borrowing.
He also criticized the prevailing administrative practices, asserting that poor management is a crucial factor damaging the economic decision-making landscape in Iraq.
Rashid underscored the importance of proactive strategies to stabilize the economy amidst political instability. He pointed out that the political environment has adversely shaped economic conditions in multiple areas, notably through the reliance on quota-based governance that has led to the sidelining of skilled professionals. This shift has disrupted existing economic frameworks and planning efforts.
“It is imperative to focus on the nation’s financial health,” Rashid cautioned, suggesting that detrimental impacts on markets are imminent. He further stressed that the presence of unqualified individuals in key economic and financial roles, combined with a lack of foresight in energy market trends, and the repercussions of global competition for resources, will significantly challenge Iraq’s economic stability.
In conclusion, Rashid asserted the necessity for a thorough assessment of future economic trajectories to avoid potential setbacks that could be detrimental. The call for strategic foresight is evident as Iraq navigates its complex economic landscape.
