Will Iraq's economy survive the salary crisis
Iraq is facing a severe financial crisis due to the cessation of oil revenues resulting from the closure of the Strait of Hormuz. This has led to a government deficit, preventing the payroll for employees and retirees from being paid for two consecutive months. Political tensions are escalating regarding the available solutions. Officials are actively exploring ways to finance salaries through domestic and external borrowing, while experts emphasize the importance of avoiding the sale of state assets such as Saddam Hussein's palaces and highlight the need to diversify the economy away from oil. Meanwhile, the ongoing government situation risks escalating further, with expectations of renewed disputes over the flexibility of oil passage through the Strait. This situation is likely to have a sharp impact on the Iraqi economy.
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