After months of anti-government protests and political uncertainty, Iraq is now grappling with its worst fiscal disaster in a long time.
The nation’s economic system and state price range are closely reliant on oil earnings, and have been hit laborious by the sharp decline in international oil costs.
The World Financial institution has projected Iraq’s GDP to contract by 9.7 p.c, with the fiscal deficit anticipated to succeed in nearly 30 p.c of GDP.
Iraq’s newly appointed authorities, led by Mustafa al-Kadhimi, is now confronted with a difficult process of implementing long-overdue structural reforms, akin to decreasing public sector employment whereas additionally retaining fashionable unrest at bay.
However what are the foundation causes of the present financial disaster and what must be executed to deal with it?
And the way can the brand new authorities overcome entrenched political pursuits that oppose reform whereas additionally profitable over a public that has misplaced all belief within the political institution?
Ramzi Neman, the World Financial institution’s particular consultant to Iraq, talks to Al Jazeera.
Supply: Al Jazeera