Language:
English
Pages:
1 Online-Ressource
Series Statement:
Economic Updates and Modeling
Keywords:
Adaptation To Climate Change
;
Climate Change Mitigation and Green House Gases
;
Economic Diversification
;
Energy
;
Environment
;
Fiscal Adjustment
;
Macroeconomics and Economic Growth
;
Oil and Gas
;
Political Instability
;
Domestic Recovery
;
Economic Activity
;
Economic Diversification
;
Economic Risk
;
Global Oil Demand
;
Government Oil Revenue
;
Inflationary Pressure
;
Insecurity
;
Oil Sector Dependence
;
Political Instability
;
Structural Reform
Abstract:
Iraq's economy is rebounding thanks to rising oil output and a recovery in domestic economic activity after the pandemic. Higher government oil revenues, driven by increased export prices and quantities, have significantly strengthened the fiscal position and international reserves. Without deeper structural reforms and economic diversification, Iraq's extreme oil dependence leaves it vulnerable to commodity price volatility. Persistent high oil prices bode well for the economic outlook, but global demand is expected to gradually weaken. Downside risks to the economic outlook relate to further weakening of global demand, insecurity and political instability, and renewed inflationary pressures. Vulnerabilities could further be amplified by intensifying climate change shocks both in physical and financial terms. Furthermore, Iraq's dependence on oil leaves it vulnerable to new economic risks amid the global transition towards a decarbonized world. A new government was confirmed into office in October 2022, marking a new opportunity to implement reforms towards economic diversification, tackling longstanding structural challenges and addressing climate challenges
Note:
Iraq
,
Middle East and North Africa
