Mazhar Muhammad Salih, the Prime Minister’s finance and economic advisor, commented today, Monday, on Iraq attaining the greatest trade surplus in 10 years in 2022, and stated it meets three primary aims.
Today, Monday, a study done by the German business Statista, which specializes in market and consumer data, revealed that Iraq recorded the highest trade surplus in the previous 10 years for the year 2022.
According to Saleh, “the importance of the increase in the current account surplus comes in relation to the gross domestic product in its positive role in strengthening the means of economic stability represented by the stability of the general level of prices, which are the country’s foreign reserves, which are a lever for stability and a tool in monetary policy to combat harmful inflationary activities.”
“The high percentage of the surplus in the current account of the balance of payments to GDP provides the financing capacity toward achieving sustainability in investment spending, which is the basis for targeted economic growth without expanding external borrowing,” he added.
“The increase in the aforementioned surplus rate at the level of financial stability and balance is an important and major step toward achieving the so-called (fiscal discipline), which is based in its most important pillars on reducing external public debt and what requires a subsequent step required by fiscal policy in the field of imposing discipline, which is reducing the gap,” he said. The general budget deficit and the drive toward a balanced budget, as well as lowering public debt and the deficit, are regarded as the most fundamental pillars of financial discipline, or fiscal consolidation.
The Prime Minister’s financial and economic advisor stated, “The surplus proceeds in the current account of the balance of payments achieve three main goals, which are (price stability, stability, financial balance, and finally targeted economic growth).”
The trade balance shows the difference between the country’s imports and exports of products during the year. A trade balance surplus occurs when the value of a country’s exports exceeds the value of its imports over a certain time. A trade balance deficit occurs when the total value of imports exceeds the entire value of exports.
According to the German business statista, Iraq had the biggest trade surplus for goods in 2022 over the previous 10 years, with a surplus of $53.54 billion last year, up 64% from 2021, when the trade surplus for goods was $20.08 billion.
She said that Iraq had a trade deficit for two years, the first in 2020, when the deficit was 4.11 billion dollars, and the second in 2015, when the trade deficit was 0.94 billion dollars.
According to the report, while the balance achieved a trade surplus of 16.62 billion dollars in 2019, the trade surplus in 2018 was 35.95 billion dollars, and the trade surplus in 2017 was 15.1 billion dollars, indicating that the trade surplus in 2012 was 35.39 billion dollars.
According to official numbers released by the Iraqi Ministry of Oil, Iraq earned more than 115 billion dollars in financial profits from crude oil exports in the previous year (2022), the most in years.
According to those estimates, the daily export rate reached 3,320,000 barrels, for a total annual export rate of one billion, 211,800,000 barrels.