Latest news with #Nawaral-Saadi
Shafaq News
4 days ago
- Climate
- Shafaq News
Record heat strains Iraqi economy
Shafaq News – Baghdad A record-breaking heatwave is imposing growing economic costs on Iraq, disrupting power supplies, reducing crop yields, and cutting labor productivity, an Iraqi expert reported on Sunday. Speaking to Shafaq News, Nawar al-Saadi, professor of international economics, explained that the country is already facing tangible financial losses, weighing heavily on public finances and slowing growth. 'The cost of extreme heat is no longer theoretical — it's draining the federal budget, reducing productivity, and limiting the government's ability to respond to development needs,' al-Saadi noted. Temperatures in some Iraqi cities topped 115 degrees Fahrenheit (46 degrees Celsius) over the past week, driving electricity demand to record highs. With Iraq's power grid operating at roughly 60 percent capacity and struggling with poor distribution, authorities have increasingly relied on importing electricity and fuel — usually paid for in dollars — adding to fiscal pressure amid declining oil revenues. Significant setbacks have also hit the agricultural sector. Reduced water flows from Turkiye and Iran, combined with rapid evaporation, have lowered crop yields by an estimated 15 percent in some regions. This shortfall has increased reliance on food imports, raising demand for foreign currency and further straining the Iraqi dinar. 'The climate crisis is no longer just an environmental threat; it's becoming a financial crisis, driving up food imports and putting the dinar under growing pressure,' he added. At the same time, the health system is under strain as it manages a surge in heat-related illnesses such as sunstroke, dehydration, and waterborne infections. Medical facilities are also facing rising costs amid shortages in equipment and staff. Weather monitoring platform Play Weather reported that eleven Iraqi cities ranked among the 15 hottest locations globally over the past 24 hours. In response, provinces including Basra, Dhi Qar, Maysan, Wasit, Al-Diwaniyah, Karbala, and Babil suspended or shortened official working hours. Similar measures were implemented in Saladin, Diyala, and Al-Muthanna. Health officials have also urged residents to avoid direct sunlight during peak hours, maintain hydration, and follow medical advice to prevent heat-related complications.
Shafaq News
18-06-2025
- Business
- Shafaq News
Iraq faces growing economic strain due to Israel-Iran conflict
Shafaq News/ Iraq's economy is already showing signs of strain as the Israel-Iran conflict enters its sixth day, despite the country's non-involvement in the fighting, a leading economic expert told Shafaq News on Wednesday. Dr. Nawar al-Saadi, a professor of international economics, told Shafaq News that Iraq's geographic location, heavy reliance on oil, and integration into a sensitive regional network leave it vulnerable to the fallout of the escalating hostilities. 'So far, we're seeing three immediate economic consequences,' al-Saadi explained. 'First, the Iraqi dinar is weakening as the dollar exchange rate rises. This reflects fears that the conflict could spread, affecting oil exports or state revenues, which in turn fuels inflation through higher import costs.' The second impact, he said, is market stagnation. 'Uncertainty is freezing investment and commercial activity. Wars interrupt economic planning and scare off capital, especially when Iraq is seen as part of a high-risk geopolitical zone.' According to al-Saadi, the increase in food prices is another impact, 'Concerns over supply chain disruptions have already prompted speculative behavior and hoarding among traders. This poses a direct threat to Iraq's food security, which is already fragile due to high import dependence.' The professor warned that if the conflict intensifies or persists, the consequences could become 'far more severe.' 'Iraq's oil exports rely almost entirely on the Gulf, particularly the Strait of Hormuz. If that route is disrupted, even briefly, Iraq could lose billions in revenue and plunge into a financial crisis its oil-dependent budget cannot withstand.' Al-Saadi also highlighted the risk of domestic instability, pointing out that the longer the war drags on, the greater the chance that regional power struggles will spill into Iraq. 'If foreign interests or US assets are targeted, or southern cities become flashpoints, it could erode what's left of Iraq's economic stability.'
