Impact of Wars and Conflicts on the Iraqi Economic Performance

K. E., Hasan.,; Bassiony, Halah El_Said Mohamed; M. A., Hanafy.,

doi:10.21608/jassd.2025.382546.1056

Impact of Wars and Conflicts on the Iraqi Economic Performance

Document Type : Original Article

Authors

Studies and Research of Political and Economics Sciences Department, Faculty of Asian Postgraduate Studies, Egypt.

10.21608/jassd.2025.382546.1056

Abstract

This study analyses the causes of the Iraqi economy’s difficulties during the wars and conflicts that are through the period 1980-2023. It significantly impacted the performance of the Iraqi economy in various aspects. This period witnessed major economic challenges, starting with the Iran-Iraq War in the 1980s, through the invasion of Kuwait and the Gulf War, and continuing to the conflicts that have continued since 2003. These wars left devastating impacts on infrastructure and natural resources, leading to the deterioration of productive sectors and decline of GDP especially during the period of the invasion of Kuwait and the economic blockade of Iraq by the United States of America. This is due to the decline in the total GDP of oil exports in 1991 to $0.351 billion, representing (92.63%) of total exports, due to the economic blockade. However, it rose to $4.28 billion in 1997, after the signing of the oil-for-food memorandum of understanding, and to $5.111 billion in 1998, representing (92.93%) of total exports. Moreover, this period represents the lowest average capital formation in Iraq. Also, Political crises and internal conflicts have also contributed to reducing Iraq's ability to attract foreign investment and negatively impacted investor confidence in the Iraqi economy. In addition to the negative impact on oil production and export, which is the main source of state revenues, which led to a decline in oil revenues and deterioration in the state's financial situation?

Keywords