Iraq Economic News And Points To Ponder Monday Morning 4-27-26
The President Of The Republic Affirms To The Governor Of The Central Bank The Necessity Of Strengthening The Dinar And Continuing Reforms.
President Nizar Amidi emphasized to the Governor of the Central Bank of Iraq, Ali Al-Alaq, on Saturday the necessity of strengthening the Iraqi dinar and continuing reforms. A statement from the Presidency indicated that Amidi "received the Governor of the Central Bank of Iraq, Ali Al-Alaq, at Baghdad Palace on Saturday, April 25, 2026, who offered his congratulations to the President on assuming the presidency."
The President expressed his "gratitude for the kind congratulations, stressing the importance of cooperation between monetary and financial institutions to support economic stability and achieve sustainable development."
Amidi also emphasized the need to strengthen the Iraqi dinar and continue reforms, noting that the Presidency supports the bank's monetary policies that contribute to improving the standard of living for citizens and stimulating growth in the country. https://www.economy-news.net/content.php?id=68288
Iraq Was The Fifth Largest Importer Of Kuwaiti Non-Oil Exports In The Fourth Quarter Of 2025
Money and Business Economy News – Baghdad Iraq ranked fifth among the largest importing markets for Kuwaiti non-oil exports during the fourth quarter of 2025, with a value of approximately 51.37 million Kuwaiti dinars, continuing its position as one of Kuwait’s most prominent trading partners in the region.
According to a report issued by the Central Statistical Bureau in Kuwait, Kuwaiti non-oil exports recorded an annual growth of more than 25%, as their value increased from 580.3 million dinars to 726.6 million dinars during the same period.
The UAE topped the list of importing countries with a value of 184 million dinars and a record growth of 67.8%, followed by Saudi Arabia with a value of 95.06 million dinars and an increase of 31%, then India in third place with 87.4 million dinars despite its decline of 24.1%, while China came in fourth with 71.45 million dinars with a growth of 32.6%, and Iraq came in fifth.
The report showed that total Kuwaiti exports, including oil and its derivatives, amounted to 5.248 billion dinars during the fourth quarter of 2025, compared to 5.577 billion dinars in the same period of 2024, reflecting a decline in total exports.
Kuwaiti exports were distributed to 23 countries and major trading destinations, and included about 98 products within 21 sections, led by mineral products with a value of 4.52 billion dinars, driven by fuels, mineral oils and distillation products, followed by chemical industries with 194.8 million dinars, then transport equipment with 150.2 million dinars, and machinery and electrical appliances with about 115 million dinars, in addition to an increase in exports of natural pearls, precious stones and precious metals to 89.8 million dinars. https://www.economy-news.net/content.php?id=68391
Disruption Of The Strait Of Hormuz Is Reshaping Global Trade... And The "Path Of Development" Is A Strategic Option For Iraq.
Reports Economy News – Baghdad A British report highlighted the repercussions of the disruption to maritime traffic through the Strait of Hormuz, particularly energy exports, considering that what is happening is reshaping international trade priorities towards the search for alternative routes, including the Iraqi "Development Road" project.
A report by Amwaj Media stated that the Gulf states’ reliance for decades on a narrow and increasingly tense passage like the Strait of Hormuz was not a new phenomenon, but the scale of the current unrest and the speed of its impact have renewed interest in alternatives that go beyond traditional maritime chokepoints.
In this context, the report considered that the “Development Road,” which aims to link the Gulf to Europe via Iraq and Turkey, is no longer just a national development project, but has become an urgent strategic option within broader efforts to reshape trade and energy routes in a rapidly changing region.
He pointed out that the importance of this project is closely linked to the economic structure of Iraq, which depends on about 90% of its revenues on oil exports, most of which pass through the Strait of Hormuz, making any disruption in this passage a direct threat to the national economy.
Nevertheless, the report stressed that the success of the “Development Road” depends on its ability to integrate with and expand the Iraqi oil pipeline network, emphasizing that geography alone is not enough, but rather requires a stable political and security environment that allows the geographical location to be transformed into an effective corridor for both energy and trade.
He warned against treating the disruption of navigation in the Strait of Hormuz as a passing crisis, considering it a "structural warning" that necessitates a comprehensive reassessment of infrastructure and supply routes, and places land-based projects, foremost among them the "Development Road," at the heart of global strategic thinking.
In the same context, the report explained that the project, in its current form, provides an important logistical connection, but it remains strategically incomplete unless it is integrated with the hydrocarbon transport system, which forms the backbone of global energy demand.
He called for accelerating the development of alternative pipelines, including the Basra-Haditha project, and the connecting lines to the port of Aqaba in Jordan and the port of Banias in Syria, to secure export outlets outside the Gulf and reduce dependence on the Strait of Hormuz.
He also noted efforts to reactivate northern export routes through Türkiye, and discussions about reviving an Iraqi-Saudi pipeline, as part of a broader trend to diversify export geography and reduce geopolitical risks.
Regarding the challenges, the report stressed that the main obstacle lies not in the technical aspects, but in political cohesion, noting that the infrastructure landscape in Iraq still suffers from fragmentation among multiple institutions and internal and external interferences that hinder the building of a unified strategy.
He added that the lack of coordination between transport and energy projects may lead to their development in parallel without integration, which limits their impact and turns them into separate assets instead of an integrated strategic system.
The report noted that developing alternative land routes gives Iraq increasing importance in the calculations of regional and international powers, but at the same time puts it under the microscope of internal challenges, especially with regard to political stability and governance.
He pointed out that land crossings, unlike sea routes which can be secured militarily, depend primarily on the stability of political systems and their ability to provide a safe and stable environment.
In this context, the report suggested that the interests of external parties in the stability of Iraq would increase, but this interest would remain conditional on Baghdad’s ability to provide real guarantees, given the existence of regional alternatives that may bypass Iraq through Jordan and Syria.
The report concluded by noting that the security developments in the Strait of Hormuz represent a rare strategic opportunity for Iraq to reposition itself in the regional system, but that capitalizing on this opportunity requires more than infrastructure projects, but rather political reforms and deep institutional coordination.
He stressed that the future of the "Development Road" will depend on Iraq's ability to transform from a promising geographical location into an effective strategic corridor, warning that failure to achieve this transformation could keep the country on the margins of major transformations despite the opportunities they offer. https://www.economy-news.net/content.php?id=68330
Ministry Of Construction: Housing Loan Application Form To Be Launched Soon
Money and Business Economy News – Baghdad The Ministry of Construction, Housing and Municipalities is preparing its lending plan for the current year, relying on amounts recovered from previous loans as a primary source of funding, in light of the complete exhaustion of financial allocations within the three-year budget.
The official spokesperson for the Ministry, Istabraq Sabah, stated in a statement to the official newspaper: The Housing Fund will rely, within its lending plan for this year, on the amounts recovered from last year’s loans, because all the amounts allocated within the three-year budget, amounting to 900 billion dinars, have been exhausted after granting 20,000 loans, with seven thousand accumulated transactions currently being worked on to complete them.
He explained that the refunded amounts are collected electronically through a special application of the Fund on the official (Aur) platform, to facilitate procedures for borrowers and ensure the smoothness of the repayment process, as they will be determined so that they can be launched during the current year.
Sabah pointed out that there is no fixed date for launching the loans yet, because this matter is linked to financial, administrative and technical procedures, as well as the amount of refunds that should cover the largest number of those wishing to obtain them.
He explained that the low interest rates on the loans encourage most citizens to apply for them, noting that the board of directors of the Housing Fund will announce, once all these procedures are completed, the launch of an electronic form for the new loans.
The official spokesperson for the ministry confirmed that the lending process has witnessed remarkable progress after the transition to electronic work, which facilitated the process of granting loans and blocked the path for unscrupulous people who try to exploit citizens for money, as notifications and updates now reach borrowers through the electronic application of the fund or by sending short messages, without the need to visit any of the branches.
He noted that the fund will adopt the same mechanisms adopted in previous years, as well as the points of preference in terms of location and type of building, as well as age, social status and number of children, indicating that priority will be given to people with special needs, while preserving the right of all borrowers to obtain the loan successively, according to the available amounts. https://www.economy-news.net/content.php?id=68377
A Critical Reading Of The Consumer Price Index In Iraq: Between Measurement Accuracy And Representational Flaws
Economy News – Baghdad The Consumer Price Index (CPI) is the primary tool for measuring inflation and the evolution of living costs in macroeconomic analysis. However, its analytical value may not lie solely in its mathematical accuracy, but rather in its ability to represent fluctuations in the economic and social situation, especially in the Iraqi context. Hence, the need arises for a critical reading of this index, not to question its methodology, but to assess its suitability to the structure and specificities of the local economy.
Official data indicates that Iraq's Consumer Price Index reflects a relatively stable general price level, with inflation fluctuating within a low range of approximately 1% to 2% annually, and mostly limited monthly increases not exceeding 0.1%–0.3%.
These figures superficially reflect a success in achieving monetary stability, supported by a stable exchange rate and the absence of widespread macroeconomic shocks. However, this statistical stability raises serious questions about the extent to which it accurately reflects the actual state of the markets.
The first problem relates to the structure of the consumption basket used to calculate the index. The Consumer Price Index relies on relative weights that reflect spending patterns.
However, while these weights are quantitatively important, they may not accurately reflect recent changes in Iraqi consumer behavior, especially in light of economic transformations and the increased share of spending on food. In fact, food items represent a high percentage of household spending, ranging between 35% and 45%, a category characterized by high price volatility compared to other components.
Herein lies the second problem: the overall index, being a weighted average, tends to absorb sectoral shocks, especially when these shocks are confined to specific components such as food.
Although some food items may experience monthly price increases of 10%–20% at certain times, their impact is mitigated within the overall index due to the stability or slower price changes in other components such as housing or services. Thus, overall inflation appears low, while point inflation is significantly higher.
The third problem relates to the nature of price changes in Iraq, which often do not follow a gradual path but rather appear as short-term shocks and sharp fluctuations.
This nature makes the index less able to capture the dynamics of instability, as it focuses more on the overall trend than on price volatility. Estimates indicate that food price volatility is three to five times greater than the overall index volatility, meaning that the index does not reflect the degree of price risk that consumers face in their daily lives.
The fourth problem concerns the gap between measured and experienced inflation. While official data indicates low inflation, consumers face daily fluctuations in the prices of basic goods, creating a cost-of-living burden that exceeds what the figures reflect. This gap is a direct result of the basket's structure, the weighting of components, and the aggregation mechanism.
From a monetary economic perspective, the Consumer Price Index (CPI) in Iraq performs its calculation function efficiently, but it suffers from representative deficiencies in an economic environment characterized by high food prices, weak supply stability, and heavy reliance on imports.
Therefore, relying on it as the sole indicator for economic decision-making may lead to incomplete or misleading readings.
Accordingly, we propose developing complementary measurement tools, such as:
1. Sub-indices of food prices with a higher frequency, whether weekly or daily.
2. Measures of price volatility (Volatility Indicators), not just the general trend.
3. Indicators of living inflation that take into account actual consumer behavior.
Therefore, it can be argued that the problem does not lie in the Consumer Price Index itself, but rather in its application outside its analytical context.
The index suggests that prices are stable, but economics indicates that this stability is uneven. Between these two perspectives lies an analytical gap that necessitates a re-evaluation of how inflation in Iraq is interpreted, not merely as a number, but as a dynamic structure reflecting market interactions with the realities of daily life. https://www.economy-news.net/content.php?id=68378