Assessing the Level of Economic Security in Iraq Using the Inverse of the Financial Distress Equation: An Empirical Study for the Period (2000–2022)

Abstract

Estimating the level of economic security in Iraq during the period (2000–2022) using key variables (GDP growth rate, inflation rate, unemployment rate, poverty index, investment index, and foreign trade), alongside other indicators, can assist economic policymakers and those concerned with sustainable economic development in Iraq to take effective measures and formulate appropriate strategies to achieve a higher level of economic security. Hence, the importance of this study lies in its attempt to estimate Iraq’s economic security using a set of indicators within the Financial Distress Index (FDI) equation, which serves as an inverse measure of economic security. The study aims to measure financial distress and identify influencing factors to design economic policies that enhance economic security and reduce financial hardships in Iraq. Its significance stems from revealing the impacts of political and economic crises, such as the 2003 U.S. invasion, the 2020 COVID-19 pandemic, and oil price fluctuations, on Iraq’s economy. The study provides an analytical tool for assessing economic performance, aiding policymakers in developing sustainable strategies to reduce poverty and inflation, promote growth, and improve living standards.