The economic effects of the drop in world oil prices on the Iraqi economy

Abstract

Oil constitutes one of the most important natural resources owned by the countries of the world, until the discovery of oil for the first time was considered a major turning point in the economies of the producing countries, until consumption patterns changed accordingly and life began to develop in all its manifestations as a result of oil revenues that contributed to increasing the national income of the oil countries.  The impact of the oil-producing countries on the drop in oil prices has started to exercise its negative effects on their economies as well as on the implementation of their development programs, as oil revenues represent the main nerve in financing those programmes. In addition to the fact that most of the developing oil-producing countries are rentier countries, oil is the main factor in the formation of their public budgets. Therefore, it is important to study and analyze this specific issue in order to reach the desired results of the study and ways to find solutions to the continuous fluctuations in oil prices.