An Analysis of the Relationships between Iraq's Public Debt and A Few of its Economic Development Indicators from 2004 to 2022
Keywords:public debt, public debt indicators, gross domestic product
The purpose of the study was to examine and evaluate the relationship between Iraq's public debt and a few critical indices of economic progress between 2004 and 2022. Several of the key public debt indicators were analyzed using the inductive method. The volatility of public debt was correlated with changes in crude oil prices, indicating the ineffectiveness and instability of the financial and monetary policies. Public debt is considered One of the major problems facing the Iraqi economy; to find out whether the Iraqi public debt is within safe limits or has reached the stage of danger according to the economic indicators of public debt established by international organizations and institutions, represented by the International Fund and the World Bank, the research reached a set of conclusions, the most important of which is that Iraq in the years 2004 and 2005 had exceeded the safe limits of debt—the year.
The ratio of public debt to GDP was 172% and 80%, respectively, and did not surpass the safe limits for public debt (60%) as a percentage of GDP for 2006–2022. This indicates the economy's capacity to meet its financial commitments to creditors. Still, the reality is quite different because of the country's rentier status, its inability to diversify its sources of income, the possibility that it will be vulnerable to financial crises, and the ongoing drop in potential crude oil prices.