Iraq: How Oil-Dependent Iraq Can No Longer Pay the Bills

Feb 20, 2026 | Sinan Mahmoud
National
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Between falling oil prices, bloated public spending and desperate government measures seeking to remedy the situation, Iraq’s officials and citizens fear the nation is heading towards complete economic collapse.  For decades, Iraq has been one of the world’s top oil-producing nations, relying on this output for almost all its revenue. But with a growing public sector reliant on social welfare and international oil prices fluctuating, the gap between revenue and spending is widening.