Monday, June 23, 2025
Economist Warns Of Recession Signs: Low Inflation Is A Warning Bell
Economist Warns Of Recession Signs: Low Inflation Is A Warning Bell
Economy 20-06-2025, 12:13 | 514 Baghdad Today – Baghdad Economic expert Munir Al-Obaidi warned on Friday (June 20, 2025) of signs of recession that could turn into a broader crisis affecting the Iraqi economy, indicating that the decline in inflation is a warning bell for the recession phase.
Al-Obaidi said in a post on his Facebook page, which was followed by Baghdad Today:
"The Iraqi Statistical Authority announced a decline in the country's monthly inflatio
n rate by 0.3% during the month of April, while the annual general inflation rate recorded 1.6%, and core inflation 0.6%."
He added, "It is noteworthy that food prices continued to rise by 3.2% annually, despite declines in the prices of bread, meat, and fish.
This is due to sharp increases in the prices of fruits and vegetables, which rose by 13.7% and 8.4%, respectively." He pointed out that, "In contrast, tobacco prices declined by a significant 26%, while
clothing and footwear prices saw a slight annual increase of 2%.
Household appliances recorded a 1% decline, while furniture and office equipment prices rose by 0.5%." He pointed out that "in terms of geographical distribution, the annual inflation rates, by region, were 1.1% in Kurdistan, 1.4% in the central governorates, and 3.1% in the southern governorates."
Al-Obaidi explained that “the decline in prices, despite its positive impact on citizens, especially in sectors such as electrical appliances and furniture, may reflect a state of stagnation in the market,
as a result of weak consumer confidence, lack of liquidity, and a decline in financing provided to the private sector, especially with the weakness of insurance services provided by financial institutions.”
He indicated that “although the decline in inflation may appear to be a positive indicator, it may also be an alarm bell for a phase of recession, threatening to reduce job opportunities in the private sector and
weaken the ability of local products to compete due to rising costs, which may lead to further pressure on the government sector in light of the high unemployment rates.”
He continued, "What is required today is to closely monitor economic indicators and take serious steps to stimulate economic activity and support the private sector, so that signs of recession do not turn into a broader crisis that affects the entire Iraqi economy." https://baghdadtoday.news/276915-.html
DINAR EXCHANGE 🚨 Trump’s 2‑Week Iran Deadline = RV Countdown? 🕰️💣
DINAR EXCHANGE
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Baghdad in UNSC: Iran strike risks regional war
Shafaq News/ On Sunday, Iraq’s representative to the United Nations Security Council expressed Baghdad’s “deep concern” over the rapidly escalating military developments.
In remarks delivered during an emergency session of the Security Council, Ambassador Abbas Kazem Ubaid Al-Fatlawi noted Iraq’s condemnation of the recent attack targeting nuclear facilities, cautioning such operations risk expanding the conflict and could draw in additional regional and international actors.
Al-Fatlawi stressed that targeting nuclear sites “sets a dangerous precedent that violates the principles of the nuclear non-proliferation regime.” He called on the international community to take immediate steps to revive dialogue channels, warning that such attacks could lead to “catastrophic radioactive leaks that threaten both people and the environment, with cross-border consequences.”
He added that the region has experienced repeated waves of instability over recent decades, but now faces the danger of a full-scale regional war—marked by economic fallout that threatens global supply chains and international maritime routes.
The ambassador also emphasized that Iraq is “directly affected by these developments and has already documented repeated violations by parties to the conflict.”
The UN Security Council convened an emergency session on June 23 in New York to address the United States’ airstrikes on Iran’s nuclear facilities. The meeting explored a draft resolution—sponsored by Russia, China, and Pakistan—calling for an immediate, unconditional ceasefire in the Middle East.
TIDBIT FROM MARKZ
MarkZ
[via PDK]
...Here is one we need to watch because of the timing. We are seeing some correlation between stablecoin and the digital dinar. With a potential rate of up to $3.22. But I still think it will be higher.
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