Iraq Economic News and Points To Ponder Monday Evening 6-15-26
Oil Accounts For 84% Of Iraq's Revenues In Early 2026
2026-06-15 Shafaq News- Baghdad Oil revenues totaled 26.121 trillion Iraqi dinars ($17B), accounting for 84% of Iraq's total income of 31.163 trillion dinars ($20B) during the first four months of 2026, according to federal government state accounts through April.
Actual spending reached 37.835 trillion dinars ($25B) during the January-April period, leaving a budget deficit of 6.672 trillion dinars ($5B). Non-oil income stood at 5.041 trillion dinars ($4B), representing the remaining 16% of total revenues.
Current expenditures amounted to 36.444 trillion dinars ($24B), while investment spending reached 1.391 trillion dinars ($902M).
Iraq, OPEC's second-largest oil producer, relies on crude exports for about 90% of federal income, a dependence that has come under pressure after the war in Iran disrupted shipping through the Strait of Hormuz, which carries around 20% of global oil supplies. In late March, economic expert Nabil Al-Marsoumi estimated that Iraq had reduced production by around 2.9 million barrels per day, the steepest cut among OPEC members.
Read more: Iraq’s oil bottleneck: Abundance trapped by dependency
https://www.shafaq.com/en/Economy/Oil-accounts-for-84-of-Iraq-s-revenues-in-early-2026
Financial Crisis And A Missing Budget... The Economy Is On The Brink Of Collapse
Information/Report.. The financial situation in Iraq is witnessing escalating challenges in light of the continued pressure on the general budget and the delay in its approval, which raises concerns about the repercussions on the financing of service projects and basic government obligations, at a time when calls are increasing to adopt economic reforms and diversify sources of income to reduce dependence on oil.
In this regard, economic analyst Muayad Al-Ali confirmed in a statement to Al-Maalouma Agency that “the current government is facing increasing financial pressures with regard to financing service and investment projects, in addition to its basic obligations such as employee salaries,” indicating that “this reality poses real challenges to its ability to implement its development programs without affecting financial stability.”
He added that “continuing to rely on oil as the sole source of income makes the Iraqi economy vulnerable to global fluctuations, which necessitates a serious move towards diversifying revenue sources and activating other productive sectors.”
Al-Ali pointed out that “combating corruption and recovering looted funds are a fundamental pillar for improving the financial situation, along with the need to set clear priorities in government spending and focus on service projects that have a direct impact on the lives of citizens.”
He warned that “any expansion of internal or external borrowing without careful study could put pressure on the country’s economic and political decision-making,” stressing that “maintaining financial reserves is an important priority at the present stage.”
He concluded by saying that “the government’s success in the financial file depends on its ability to achieve a balance between securing salaries and financing projects, while adopting a more diversified and sustainable economic policy.”
In the same context, Hussein Al-Daraji, a member of the parliamentary finance committee, stated to Al-Maalouma News Agency that "the current data does not indicate the possibility of approving the general budget during the current year in light of the existing financial and economic challenges."
He added that "the parliamentary finance committee will begin holding intensive meetings during the next legislative session to study suitable alternatives through which the continued funding of state institutions and the covering of necessary expenses can be ensured."
He noted that "the next phase requires developing financial and economic solutions that are appropriate to the current reality and ensure the continued fulfillment of government and service obligations."
He affirmed that "the Finance Committee will work in coordination with relevant authorities to arrive at realistic solutions that contribute to overcoming the existing financial challenges."
It should be noted that the next phase requires more realistic financial and economic measures to ensure the continued funding of state institutions and the coverage of necessary expenditures, along with the need to proceed with structural reforms that contribute to strengthening financial stability and reducing dependence on oil resources as the sole source of revenue. End/25s
https://almaalomah.me/news/135647/report/أزمة-مالية-وموازنة-غائبة-الاقتصاد-على-حافة-الهاوية
Iraq: Between Oil Abundance And Financial Deficit... Calls For Economic Reform
Information/Report... The Iraqi economy faces a stark paradox that raises many questions in political and public circles. Despite the massive financial inflows resulting from oil sales, official indicators still point to a budget deficit and difficulties in securing public funds. This reality has placed the country's fiscal policy under intense scrutiny, amid escalating warnings about the lack of oversight and the squandering of revenues. Simultaneously, the door has been closed to easy and dangerous solutions such as printing money, leaving the government with only one option: comprehensive structural reform.
In this regard, former MP Abdul Qadir Muhammad confirmed in a statement to Al-Maalouma Agency that “Iraq witnessed large financial inflows from oil sales that were supposed to be reflected in the service and economic reality, but the weakness of financial management and the absence of oversight contributed to the failure to achieve the desired results.”
He added that “the continued talk about financial difficulties in securing public expenditures reveals the existence of financial waste and weakness in coordination mechanisms between state institutions, which has led to the continuation of the deficit gap despite the available resources.”
He pointed out that “addressing the financial crisis requires tightening control procedures, rearranging public spending priorities, and reducing financial waste, in order to ensure optimal utilization of oil revenues.”
Mohammed concluded by saying that “excessive reliance on oil without genuine economic reforms will keep the economy vulnerable to fluctuations and hinder the government’s ability to achieve sustainable financial stability.”
In the same context, economic expert Rashid Al-Saadi confirmed in a statement to Al-Maalouma Agency that “the Central Bank cannot print new paper currency to address the financial deficit that the country is experiencing, and its role, according to the prevailing law, is limited to printing replacement currency for torn and worn banknotes, as well as compensating for internal commissions.”
He added that “the Central Bank of Iraq did not resort to printing new paper currency, as this step is considered a violation of Law No. 56 of 2004,” explaining that “the bank relies on a global economic plan to raise the country’s economy according to the prevailing perspective, without the need to resort to printing new currency for fear of experiencing a financial setback.”
Al-Saadi explained that “the country’s economy will recover in the coming period and regain its economic standing without the need for external borrowing.”
Experts believe that escaping the cycle of recurring financial crises lies not in temporary fixes or measures that violate banking laws, but rather in an administrative revolution that controls public spending and curbs waste.
The recovery of the Iraqi economy and avoiding the trap of external borrowing remain contingent on the seriousness of institutions in reducing their dependence on oil and transforming financial surpluses into tangible development projects that improve the quality of services provided to citizens. End/25
Standard & Poor's: The Iraqi Economy Is Moving Steadily Towards Strengthening Financial Sustainability Despite Regional Challenges
Baghdad/ NINA / Standard & Poor's (S&P) credit rating agency issued its June 2026 report, confirming Iraq's rating at (B-/B) and removing the previously assigned credit watch.
The agency stated in its report that "the Iraqi economy is steadily progressing towards strengthening fiscal sustainability despite regional challenges."
It also predicted that "increased oil production during 2026 will be a crucial support for Iraq in the face of global price volatility and surrounding geopolitical tensions." The agency
commended the Iraqi authorities' efforts to redirect some oil export channels following recent events and diversify export routes after Cabinet approval, as part of plans aimed at increasing oil exports and diversifying the country's electricity and gas sources. This has led to investments in power plants and liquefied natural gas during 2025.
The agency also predicted a gradual and sustained recovery in oil production and exports in the second half of the year, with Iraq's real GDP expected to rise by about 13% in 2027.
According to the report, large international reserves, in addition to liquid assets directly available to the government (estimated at about 11% of GDP, including foreign deposits), will provide Iraq with some flexibility, including the ability to meet its debt obligations in both local and foreign currencies on time and in full.