The Ministry of Planning in the Iraqi government revealed that the contribution of oil to the GDP during 2020 amounted to 57 percent, while oil constitutes 80 percent of the country's general budget. Whereas, wholesale and retail trade and hotels came second in terms of contributing to the GDP by 8.05 percent.
General government activity came in third place with a rate of 7.91%, while agricultural and industrial activity came in third place with a rate of 4.77% and 1.67%, respectively in GDP.
Iraq is the second largest producer of crude oil in OPEC after the Kingdom of Saudi Arabia, with an average production of 4.6 million barrels per day in normal conditions, far from production cuts agreements. According to the report, the Iraqi economy is still rentier by relying on oil activity as a main source of income, as crude imports represent a major source of financing the budget, with a rate of more than 80 percent of the general budget revenues. According to the Iraqi Ministry of Oil, fiscal revenues from oil sales in 2020 decreased by 47 percent to $ 41.7 billion from $ 78.55 billion in 2019.
Iraq is experiencing a suffocating financial crisis, due to the decline in oil prices under the pressure of the Corona pandemic, which has paralyzed large sectors of the world’s economies.
Source (Anadolu Agency, Edited)
