Iraq Economy Takes a Plunge in COVID Aftermath

Like many other countries, the Iraq economy has been hit heavily by the effects of Coronavirus. As one of the worlds leading oil producers, Iraq is suffering catastrophic losses to its economy. Iraq is looking to offset its losses at this time.

Iraq is planning many painful budget cuts according to sources at the Associated Press. The historic crash in oil prices in the wake of the coronavirus pandemic is reverberating across the East. As crude-dependent countries scramble to offset losses from a key source of state revenue decision-makers are at a standstill because of the Prime Minister election in Iraq. Iraq saw massive protests in recent months by a populace angry over the weak economy and rampant corruption. Cutbacks in spending will only increase the pain for a population struggling to induce by under coronavirus restrictions. Within the capital’s Tahrir Square, protesters are still camped out, determined to not let their movement die. In an interview, Iraqi political analyst Sajad Jiyad said, “Cuts need to be deeper to make a dent in payroll, and even then, if revenues are so low there comes a point where cuts are not enough”. Given the current state of Iraq’s economy, it is unknown what will come of the election for a new Iraqi Prime Minister. Regardless the sunken economy is sure to affect this process.

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