Where is the Kurdish economy heading?
many parties, the amount is estimated to be around 15 billion dollars. Second: the price of crude oil is too low. Third: the I.S.I.S threat is costing too much money and is slowing down the economic growth of the Region.
Is it all doom and gloom though? It’s not as bad as what we see on some of the scaremongering news channels. I.S.I.S is being pushed back to Syria and is losing control in Iraq. The upcom- ing offensive to return Mosul to Iraqi government rule will be a big turnaround politically. Therefore, it will boost confidence in the economy, and attract foreign investors.
Crude oil prices are unlikely to stay low forever. Currently it’s stabilized in the $50-60 dollars region, and experts are predicting another rise within a year or two. This will increase the national revenue to Kurdistan and Iraq. It will also help paying off the debt that the Kurdistan Regional Government has incurred.
The main lesson to be learnt from all this is that Kurdistan needs to find alternative, worthwhile means of national income apart from the easy oil money. It needs to invest in agriculture and tourism, two sectors that could provide a viable alternative.