Iraqi markets at a standstill amid internal and external pressures

Shafaq News – Baghdad

Iraq is facing an economic slowdown due to a combination of domestic and external factors, the Baghdad Chamber of Commerce stated on Sunday.

Rashid Al-Saadi, the chamber’s spokesperson, told Shafaq News that “Iraq is not producing a sufficient range of food or industrial goods, and the infrastructure cannot compensate for the heavy reliance on oil revenues. Non-oil revenues account for only a small portion of total income.”

He added that financial and administrative corruption, along with internal political crises, have deepened the economic slowdown.

Al-Saadi also highlighted that unemployment and population displacement in central and southern regions have negatively affected the national economy, emphasizing the need for “government support for Iraq’s negotiators to strengthen foreign relations and find rapid solutions to economic challenges.”

Regarding external factors, Al-Saadi pointed to regional conflicts, particularly the war between Iran and Israel in June, and fears of renewed rounds of violence.

Earlier, Iraq’s monthly inflation rate rose by 0.1% in October, while the annual rate declined by 0.3%, according to a report from the Iraq Future Foundation for Economic Studies and Consultancy. While lower prices benefit consumers, the report cautioned that declining inflation may also indicate a slowdown in economic activity.