Shafaq News- Baghdad

Markets across Iraq are unusually quiet this Eid al-Fitr, as delayed salaries and rising prices force families to scale back holiday spending. In one of Baghdad’s busy markets, women shopping for children’s clothes pick only the essentials, leaving even basic items behind as financial pressure mounts.

Umm Ahmed, a woman in her forties, moved slowly between stalls, scanning clothes for her children. She explained that this year she is “buying only a little,” pointing to higher prices and the absence of salary payments, which have forced families to prioritize necessities.

“In previous Eids, markets were packed and we bought more for the children. Now we settle for less,” she added.

Many families had hoped to receive salaries before the holiday, but delays have reshaped spending plans. Umm Mohammed, a housewife, noted that numerous families had been waiting to buy Eid clothes and sweets. The delay has pushed some to postpone purchases or scale them back.

“Some families may not buy new clothes this year and instead rely on last year’s,” she explained.

Window Shopping Dominates

Across Iraq, the slowdown is evident. Weaker purchasing power and climbing prices have left markets quieter than in previous years, with traders reporting lower demand. One trader told Shafaq News that many visitors ask about prices but leave without buying —or make only a single purchase.

Higher customs duties have pushed import costs up, while rising transportation and shipping expenses, tied to regional tensions, have further driven prices higher. For small traders, the drop in customers comes at a steep cost. “Shop rents reach millions of dinars per month,” one seller noted. “This situation is increasing financial pressure and threatens the continuity of our businesses. We also have families to support and daily expenses to cover.”

Liquidity Crunch Deepens

Economic expert Amina al-Dhahabi explained that delayed salaries, halted oil exports, and rising costs have weakened commercial activity, leaving markets quieter than in past years. With a significant portion of commerce driven by government employee spending, payment delays spread through local markets.

Meanwhile, Hilal al-Taan, another economic expert, pointed to overlapping factors behind the slowdown, including recent government statements about reducing salaries. These developments have eroded purchasing power for a broad segment of the population. “People are uncertain about the future and are cutting daily spending, focusing only on essentials,” he noted.

Unstable security conditions have heightened caution further. Many families are keeping cash at home as a precaution, avoiding unnecessary purchases and limiting themselves to what is strictly needed for the holiday.

Read more: War fears drive panic buying across Iraqi markets