Iraq's economic experts urge strategic investment amid rising internal debt
Manar al-Obaidi, executive director of Iraq Future Company for Economic Studies and Consultations, highlighted that Iraq’s internal debt has reached 13 trillion Iraqi dinars, equivalent to 4% of the country's gross domestic product (GDP).
ERBIL (Kurdistan24) – Despite a rise in Iraq’s internal debt, economic experts are calling for a strategic shift in financial management to bolster economic growth and stability.
Manar al-Obaidi, executive director of Iraq Future Company for Economic Studies and Consultations, highlighted that Iraq’s internal debt has reached 13 trillion Iraqi dinars, equivalent to 4% of the country's gross domestic product (GDP). While this marks an increase from previous years, it also presents an opportunity for more effective economic planning.
Over the past four years, internal debt stood at six trillion dinars or 2% of GDP. However, last year’s increase alone equaled the total debt accumulated during those years. This shift underscores the need for proactive financial strategies to ensure economic sustainability.
Al-Obaidi pointed out that rising oil prices last year initially suggested a potential decline in internal debt. Nevertheless, the increase has brought the overall debt-to-GDP ratio to 25%. While concerns remain about maintaining balance, this also serves as a reminder to enhance fiscal discipline and investment planning. Experts emphasize that with proper measures, Iraq can mitigate risks and harness its economic potential.
“The key lies in how internal debt is utilized,” said Al-Obaidi. He urged decision-makers to prioritize investment projects that drive economic growth rather than focusing on operating expenses. By redirecting funds toward infrastructure, industry, and innovation, Iraq can create long-term value and strengthen its economic foundation.
Moving forward, experts advocate for sustainable economic policies and strategic reforms. Al-Obaidi stressed that with strong political will and responsible fiscal planning, Iraq can turn its financial challenges into opportunities for national development.
As the country navigates economic changes, the emphasis remains on leveraging available resources wisely to build a robust and resilient economy.