Economic crisis looms in Iraq due to plummeted oil prices, delay in 2020 budget approval
Baghdad, Iraq Business, Finance, Politics, Current Affairs, Breaking News March 11 @ 9:09am
The recent plunge in oil prices has dealt a heavy blow to Iraq’s stagnating economy with the oil revenues make up about 95 percent of the federal budget, a nightmare for any new government.
With the government expenditure makes up nearly 80 percent of the economic activities, the budget delay is not only affects the economy growth, but it puts all the new investment projects on hold, including a major multi-billion-dollar deal between Iraq and China to develop key infrastructure projects in lieu for oil slated to start this year.
As the government started working on the draft budget late last year, sweeping anti-government protests broke out that have led to the government resignation. Law doesn't allow the current caretaker government to approve the budget and pass it to the parliament for final endorsement, and the new government still needs weeks if not months to be formed.