Vol: 16, Issue: 2 2026

A Study of the Impact of Global Oil Price Fluctuations on Iraq's Sustainable Development Indicators for the Period 2008-2024

Ahmed Muhammad Jassim Al- Akidi

The aim of this study is to examine the consequences of global oil price volatility on the three dimensions of sustainable development (economic, social, and environmental) in Iraq in the period (2008-2024). This study uses descriptive, analytical and quantitative methods in which the secondary data sources used are official international and national sources. The findings demonstrate that there are strong positive relationships between oil prices and economic growth indicators, and negative relationships between poverty and unemployment indicators and oil prices, with the structural unemployment indicators showing weak relationships. The results also indicate a negative environmental impact which can be observed in the form of temporarily elevated carbon emissions and gas flaring during times of price increases, and a dramatic reduction in environmental spending during times of price shocks. The reason of this impact is attributed to the structure of Iraqi economy which suffers from serious structural imbalances, as it is a rentier economy. The study findings highlight that oil price volatility severely undermines Iraq's efforts to achieve the Sustainable Development Goals (SDGs) and that measures to diversify the economy, develop a sovereign wealth fund and include the environmental element in the development policies should be taken.