Economist Bassem Antoine said on Monday that the next Iraqi government will continue to face a major challenge because the country still depends heavily on oil to support its economy. He stressed that this kind of dependence cannot be removed easily or quickly.
Speaking to dinaropinions.com, Antoine explained that no matter who forms the next government, dealing with a rent-based economy will be very difficult. He pointed out that rising salaries, growing government spending, and new public-sector appointments are putting heavy pressure on the state budget.
According to Antoine, the biggest problem is trying to move away from an economy that relies almost entirely on oil revenues. He said the real solution is not to abandon oil, but to build a diverse economy that includes oil, gas, industry, and other productive sectors. This would help Iraq create a stronger and more stable economic foundation.
He also noted that Iraq has long struggled with budget deficits and mounting debt, which makes economic reform even harder. Because of this, Antoine warned that the next government will inherit a complex and challenging financial situation that will take time and serious planning to fix.
