Iraqi monetary professional, Munar Al-Obaidi, warned of an extraordinary growth in Iraq’s inner debt, amounting to 13 trillion Iraqi dinars in only 12 months, representing 4% of the gross domestic product.
Al-Obaidi indicated in a declaration acquired by means of {dinaropinions.com} a copy of it that “this boom surpassed what was recorded all through the preceding 4 years (2020-2023), as the home debt accelerated at that point via simplest 6 trillion dinars, equal to 2% of the gross domestic product.”
Al-Obaidi defined that this growth got here in spite of the rise in oil costs in 2024 as compared to previous years, which became purported to reduce the government’s want for home borrowing. however, domestic debt persevered to rise, presently reaching 25% of GDP.
He warned that if this annual increase in debt maintains at the identical tempo, the debt ratio ought to exceed 60% of GDP within the destiny, a risky level that would negatively affect Iraq’s credit score score and reveal it to a brand new downgrade in its international evaluation.
Al-Obaidi talked about that maximum of the borrowed cash is spent on running expenses in preference to being directed towards effective investment tasks, indicating that these running expenses do now not create introduced fee for the countrywide economic system and do no longer contribute to improving the gross home product, which makes the method of repaying this debt more complicated in the future, if you want to placed the Iraqi economic system in an unwanted state of affairs.
Al-Obaidi known as on selection-makers to rethink authorities spending techniques and direct budget in the direction of funding initiatives able to strengthening the country wide economy and elevating the gross home product, warning that the continuation of the contemporary scenario ought to cause a deeper monetary crisis inside the destiny.
