The Relationship Between Public Debt and GDP in Iraq Post-2003

Abstract

Public debt is considered as one of the essential sources of revenue, with a specificity connected with its nature as being an obligation on the government that must be repaid with its interests when becoming due. In spite of that , most countries seek to obtain it, whether internal or external, to achieve a set of goals with economic implications , however, debts in reality include a set of risks within their implications.The current study seeks to determine Iraq's ability to achieve these goals and their impact on macroeconomic indicators. Despite the high debt in Iraq, the economy is still suffering from a set of problems that the debt was supposed to have been obtained to address. Therefore, it is necessary to strive to diversify economic revenues by expanding investment spending and eliminating administrative and financial corruption, which is deemed as a cause of squandering public funds, thus contributing to the decline in debt and revitalizing the Iraqi economy in the future.