Iraq’s economy running on financial fumes | The National

Iraq’s economy running on financial fumes | The National:



"One of the few things that has kept Iraq together is money, but as the country struggles to maintain oil exports and fragile internal negotiations, it finds itself running out of that commodity.



Now, with the onslaught of ISIL, dwindling income and a widening deficit, Iraq is at risk of sinking into further turmoil. Will it stay together as the United States and its allies hope to see, or does the country have a breaking point?



This year’s budget, passed a few weeks ago, was based on exporting 3.3 million barrels of oil per day at a price of US$56 per barrel, and foresaw a $20 billion deficit. While the price of crude has risen back up to the $60 mark, Iraq only managed to export an average of 2.53 million bpd last month, creating a $1.2bn budget shortfall in the first month alone. The forecast for February is not much better."



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