Economic expert Ali Al-Atabi warned today that Iraq is getting dangerously close to a serious economic crisis, saying the policies followed in recent years lacked a real economic vision and made financial problems even worse.
Speaking to dinaropinions.com, Al-Atabi said the country is standing on the edge of a real economic collapse. He explained that the government’s approach over the past three years was not truly economic at all, but mostly political, focused on short-term appearances rather than protecting people’s livelihoods.
He pointed out that heavy domestic borrowing has put huge pressure on Iraqi banks, leaving them with little ability to support the private sector. This, he said, has slowed market activity and hurt investment across the country. Al-Atabi also warned that lowering the dollar exchange rate right now is a serious mistake, as it drains Iraq’s foreign reserves without delivering real economic stability.
Al-Atabi added that the government failed to properly use border crossings and customs outlets, even though they could be a major source of revenue and help reduce reliance on oil. He stressed that four years is more than enough time to build a plan for diversifying income, but that progress has been blocked by weak planning and the absence of real institutional reform.
He concluded by warning that continuing down the same path will only make the crisis worse, unless bold and decisive steps are taken. According to Al-Atabi, Iraq urgently needs to restore balance to its monetary and fiscal policies and move toward genuine economic reform that protects both the state and its citizens.
