Iraq Economic News and Points To Ponder Late Tuesday Evening 7-14-26
Trump Praises Al-Zaidi During His Reception At The White House: This man is the best representative of the Iraqis, and we love Iraq
Washington - One News - 7/15/2026 (Iraq) US President Donald Trump received Iraqi Prime Minister Ali al-Zaidi at the White House, at the start of al-Zaidi’s first official visit to Washington since assuming the premiership.
During the reception ceremony, Trump addressed al-Zaidi, saying, “He is a good person who came to his position through elections, and he loves the Iraqi people.”
Al-Zaidi’s visit to Washington comes at the head of a governmental and economic delegation, where he discussed with the US President a number of political, security and economic issues, in addition to discussing ways to strengthen bilateral relations and expand cooperation between the two countries. https://1news-iq.net/ترامب-يشيد-بالزيدي-خلال-استقباله-في-ال/
Government Advisor: The 2027 Budget Will Be Ready On Schedule In October.
Economy News — Baghdad The Prime Minister’s financial advisor, Mazhar Muhammad Salih, revealed that the government will begin preparing the draft federal budget law for 2027 during the month of July, in accordance with the provisions of the Financial Management Law, indicating that the upcoming budget will differ from its predecessors by adopting an economic vision aimed at stimulating investment, empowering the private sector, and establishing sovereign funds to support infrastructure projects, while continuing to address internal debt and reduce financial waste.
On the other hand, Saleh stressed that combating corruption and recovering related funds are a fundamental pillar for enhancing the efficiency of the national economy, reducing investment costs, and supporting the path of sustainable development.
Saleh said in a statement to the official newspaper that the amended Financial Management Law No. (6) of 2019 obliges the Ministry of Finance to begin preparing the draft budget during the month of July, with the draft to be completed in the month of September, and then presented to the Council of Ministers for discussion and approval before being referred to the House of Representatives during the month of October, for the purpose of discussion and legislation.
He added that the 2026 budget was affected by the economic conditions and challenges that accompanied the developments in the Strait of Hormuz, indicating that the deficit is measured by the size of the internal debt, which exceeded 100 trillion dinars, but the government has a clear financial policy to address this issue through reform measures that contribute to strengthening the resource economy and diversifying sources of revenue.
Saleh pointed out that Iraq is still facing the effects of accumulated financial waste since 2003, stressing that the state is moving towards tightening control over public funds and not allowing the waste of any financial resource, in order to enhance financial stability and preserve national wealth.
He explained that the 2027 budget will be distinctive because it is consistent with the government’s economic vision, as it will give more space for private sector participation and includes the establishment of sovereign funds dedicated to financing infrastructure projects, which will support sustainable development and enhance economic growth during the next stage.
Regarding combating corruption and recovering related funds, Saleh stressed that they represent a fundamental pillar for enhancing the efficiency of the national economy, reducing investment costs, and supporting the path of sustainable development, noting that eliminating manifestations of corruption will reflect positively on the financial and economic performance of the state.
The Prime Minister’s financial advisor said that it is difficult to accurately determine the true size of the funds related to corruption, but estimates from governance circles in the international business environment point to what is known as the “cost of Iraq” on projects and investments, which in some cases may reach about 45% of the implementation cost, as a result of multiple factors, most notably extortion and bribery and the resulting decrease in the efficiency of administrative procedures.
He explained that the success of the government's anti-corruption program will gradually contribute to reducing this unproductive cost, bringing the cost of investment closer to its fair levels based on efficiency and integrity, which will enhance the attractiveness of local and foreign investment and reduce the cost of implementing economic and social development projects.
He added that activating the role of oversight and auditing bodies, especially in the planning, implementation and investment spending stages, represents a fundamental pillar for reducing financial waste and establishing standards of transparency and good governance, which supports the path of sustainable development in the country, with the lowest costs and the highest returns and benefits for the national economy.
Saleh pointed out that some circles estimate the amount of money related to corruption at about $300 billion, distributed between real estate, financial and cash money inside and outside Iraq, indicating that recovering these funds is an important factor in alleviating the current financial burdens.
He explained that combating corruption is not limited to recovering funds, but also contributes to improving overall economic performance by reducing costs and increasing the efficiency of implementing economic activities within an environment free from corruption factors, which will positively impact reducing the deficit and public debt directly and indirectly, by enhancing the efficiency of the financial and economic performance of public budgets and the country’s resources in the future. https://www.economy-news.net/content.php?id=71300
International Tensions Threaten Iraqi Markets: Warnings Of Inflation And Rising Import Costs
Baghdad Today – Baghdad Economic expert Abbas Al-Shatri confirmed on Tuesday (July 14, 2026) that successive international crises, whether political, military or economic, are directly reflected in the movement of Iraqi trade, given Iraq’s connection to global markets and its heavy reliance on imports to meet the needs of the local market.
Al-Shatri told Baghdad Today that any disruption to global supply chains or an increase in shipping and insurance costs and fluctuations in energy prices leads to an increase in the prices of imported goods, which is reflected in inflation rates and the purchasing power of citizens, as well as delaying the arrival of goods and raw materials needed for the industrial and commercial sectors.
He explained that Iraq has a network of trading partners in Asia, Europe and neighboring countries, but foreign trade is still concentrated in a limited number of markets, which makes the economy more vulnerable to risks when those countries are exposed to crises, sanctions or political unrest, stressing that diversifying trading partners is a strategic necessity to enhance economic stability.
He added that regional sanctions, depending on their nature and the countries targeted, often lead to disruptions in some import and financial transfer channels, higher transportation costs, as well as the possibility of a temporary shortage of some goods, which raises prices and increases pressure on local markets.
Al-Shatri pointed out that the government’s ability to cope with external shocks depends on the speed of response and the efficiency of economic policies, through diversifying import sources, building a strategic stock of basic commodities, supporting local production, developing alternative trade outlets, in addition to strengthening foreign reserves and maintaining monetary and financial stability.
He stressed that the most likely scenario in the event of escalating international tensions is a continued rise in trade and transportation costs, increased inflationary pressures, and a possible slowdown in business activity in some sectors, coinciding with fluctuations that the oil market may witness, which will be reflected in the state’s public revenues.
He added: The Iraqi economy has the tools to deal with external shocks, but it needs to accelerate economic reform programs, reduce dependence on imports, and expand the local production base, which will enhance the economy's resilience and limit the impact of international crises on Iraqi markets.
The Iraqi economy is closely linked to global markets, whether through the import of goods and raw materials or through the general budget's reliance mainly on oil revenues.
With the rise of international crises and the fluctuation of global supply chains in recent years, there have been repeated calls to diversify trading partners, support local production, and build strategic stockpiles to reduce the impact of external variables on markets and the national economy. https://baghdadtoday.news/303264-.html