The Rising Economic Interplay: Iraq and Turkey, 1 OCT

 The Rising Economic Interplay: Iraq and Turkey, 30 SEPT

In recent times, the economic relationship between Iraq and Turkey has seen significant developments. These changes have radically altered the trade dynamics between the two nations. As of August, Iraq has risen to become the third-largest importer of Turkish goods. This ascent signifies a substantial shift in trade dynamics, pushing Iraq to the forefront of Turkey’s economic relationships.

Simultaneously, Turkey’s exports have experienced an increase, indicative of its growing economic strength and influence in the region. However, on the flip side, Turkey’s imports have seen a decrease, suggesting a shift towards greater domestic production or a change in consumption patterns. These movements in trade offer key insights into the evolving economic landscapes of both Iraq and Turkey.

(Also Read: A Detailed Examination of Turkey’s Constitutional Court Ruling on Motor Vehicle Tax)

World Bank’s Role in Iraq’s Economic Development

The World Bank Group has been instrumental in supporting the Government of Iraq’s efforts to stabilize its economy, improve governance, and support the rebuilding of livelihoods. The organization works closely with partners in the international community to buttress economic reforms that strengthen the long-term economy. In September 2020, the World Bank released a Country Economic Memorandum, analyzing the constraints and drivers of growth, and recommending policies for more diverse and inclusive economic models.

In August 2021, the World Bank Board approved its new Country Partnership Framework (CPF) with Iraq for the fiscal years 2022-2026. The framework outlines the main development goals it will support in Iraq. It proposes a series of strategic interventions to help the country respond to the pandemic, reform the economy, and rebuild its human capital. The framework is organized under two pillars: improved governance and public service delivery, and private sector participation; and strengthened human capital.

In 2021, Iraq exported 1.61 billion USD to Turkey. The main products that Iraq exported to Turkey were gold, petroleum coke, and refined petroleum. Over the last 25 years, the exports of Iraq to Turkey have increased at an annualized rate of 17.5%, from 28.5 million USD in 1996 to 1.61 billion USD in 2021.

(Read Also: Decoding the EU’s Financial Aid to Turkey: A Comprehensive Analysis)

Turkey’s Economic Strength

In 2021, Turkey exported 11.1 billion USD to Iraq. The main products that Turkey exported to Iraq were jewellery, wheat flours, and poultry meat. Over the last 25 years, the exports of Turkey to Iraq have increased at an annualized rate of 19.9%, from 119 million USD in 1996 to 11.1 billion USD in 2021. This growth signifies Turkey’s growing economic strength and its expanding influence in the region.

In 2021, Turkey’s exports rose by 12.9% to 254.2 billion USD, reaching the country’s highest level ever. This surge highlights a boost in business confidence in Turkey, making it an attractive trade partner for many nations.

Overall, the evolving economic relationship between Iraq and Turkey is a testament to the changing dynamics of trade in the region. As Iraq emerges as a significant importer of Turkish goods, and Turkey’s exports continue to rise, these shifts provide a fascinating glimpse into the economic interplay between these two nations. As these trends continue, they are expected to shape the broader economic landscape in the region in the coming years.

https://bnn.network/world/iraq/the-rising-economic-interplay-iraq-and-turkey/