Iraqi Kurds’ economic recovery will be limited
Thursday, January 10, 2019
Subject
The economic outlook for Iraq’s Kurdish region.
Significance
The Kurdistan Region of Iraq (KRI) has seen a limited economic recovery over the past year. It suffered catastrophically following the central government's imposition of sanctions following the region’s abortive 2017 independence bid.
Impacts
- A likely larger federal government allocation to the KRI in the 2019/20 budget will facilitate economic recovery.
- Increased US pressure to boost Iraqi oil exports to Turkey will increase local government revenues.
- As both local and federal government revenues depend on oil, falling prices would cause another contraction.
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