Shafaq News/ The Iraq Future Foundation revealed on Saturday a 93% increase in Chinese exports of direct goods to Iraq over the past decade, warning that this surge raise concerns about Iraq's ability to meet the escalating demand for foreign currency.
According to the foundation's report, Chinese direct exports to Iraq totaled $7.9 billion in 2015, with an anticipated rise to $15.3 billion by the end of 2024 based on early-year data.
The report highlighted specific sectors driving this growth. Machinery and equipment exports, including air conditioning and refrigeration devices, saw a remarkable 162% increase, from $1.4 billion in 2015 to an expected over $3.7 billion by 2024.
Electrical appliance exports, constituting 14% of China's total exports to Iraq, also surged by 77%, from $1 billion to a projected $1.9 billion by 2024.
Notably, Chinese iron and steel exports experienced the most significant spike, with a staggering 280% growth compared to 2015, projected to reach $500 million by 2024.
Moreover, rubber-made product exports, particularly tires, soared by 195%, from $151 million in 2015 to an estimated $446 million by the end of 2024.
The foundation attributed this exponential growth to various factors, including rising demand due to population growth and urban expansion in Iraq and direct shipping from China instead of other intermediary countries.
However, the report cautioned that this surge could pose challenges, leading Iraq towards a phase where it struggles to cover the burgeoning demand for foreign currency. It recommended strategies such as localized manufacturing to reduce dependency on Chinese imports, especially in critical sectors like mechanical and electrical devices and tires.