2024-02-22T09:55:20+00:00
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/ Energy Intelligence magazine, which studied the impact of the spread of conflict in the Gulf and the Middle East on major oil and gas producers, reported that Iraq came second after Kuwait among the countries most exposed to oil supply risks.
The magazine stated in a report, which Agency reviewed, that the reason for this is “Iraq’s greater dependence on oil revenues, in addition to the risks of weak economic foundations.”
She added that “while all Gulf economies depend on oil and gas revenues, some are less diversified, meaning that these governments rely heavily on oil and gas to feed their budgets, with Iraq and Kuwait topping the list at 87 percent and 88 percent respectively.”
“Iraq’s economic fundamentals are particularly turbulent,” the magazine continued. “While Baghdad has relatively healthy central bank reserves, buoyed by abundant oil revenues for 2022 and 2023, it does not have a sovereign wealth fund, and suffers from relatively high debt, a large fiscal deficit and a weak credit rating — in addition to a population of more than 45 million, compared to about 4.3 million in Kuwait.”