Iraq achieves largest trade surplus in a decade, official comments
Shafaq News / Iraq's financial and economic advisor to the Prime Minister, Muzhar Mohammed Saleh, commented on Iraq achieving its largest trade surplus in 2022 over the past ten years, stating that it serves three main objectives.
Statistics from the German company Statista revealed today that Iraq achieved its largest trade surplus for the past ten years in 2022.
Saleh, in an interview with Shafaq News Agency, explained the significance of the increase in the current account surplus in strengthening economic stability, represented by price stability, foreign reserves, and their role in monetary policy to combat harmful inflation and ensure the purchasing power of incomes.
He added, "the increase in the surplus percentage in the current account of the balance of payments to the Gross Domestic Product (GDP) provides financial capacity towards achieving sustainability in investment spending, which is the basis for targeted economic growth without expanding external borrowing."
Furthermore, he pointed out that the rise in the mentioned surplus on the level of financial stability and fiscal balance represents an important and essential step towards achieving what is known as "fiscal discipline." This discipline includes reducing external public debt and taking subsequent steps required by fiscal policy in reducing the budget deficit gap and moving towards budget balance. Reducing public debt and decreasing the deficit are the two key elements of fiscal discipline or financial reinforcement.
He concluded by saying that "the surplus in the balance of payments' current account achieves three main objectives: price stability, financial balance, and targeted economic growth."
The trade balance reflects the differences between a country's imports and exports of goods during a year. If the total value of exports exceeds the total value of imports during a period, it is referred to as a trade surplus, while if the total value of imports surpasses the total value of exports, it is called a trade deficit.
According to Statista's data, Iraq achieved its highest trade surplus for goods in 2022 over the past ten years, with a surplus of $53.54 billion, marking a 64% increase compared to 2021 when the trade surplus for goods was $20.08 billion.
The report further stated that Iraq experienced a trade deficit in two years, in 2020, when the deficit reached $4.11 billion, and in 2015, when the trade deficit was $0.94 billion. In 2019, Iraq achieved a trade surplus of $16.62 billion, and in 2018, the trade surplus was $35.95 billion. In 2017, the trade surplus reached $15.1 billion, while in 2012, it was $35.39 billion.
In the past year (2022), Iraq recorded financial revenues of over $115 billion from crude oil exports, the highest in years, according to official figures released by the Iraqi Ministry of Oil. The figures revealed that the daily export rate averaged 3.32 million barrels, totaling 1.211 billion barrels for the entire year.
