Iraqi Budget Tests Relationship between Sudani, Political Parties

Iraqi Prime Minister Mohammed Shia al-Sudani (Reuters)
Iraqi Prime Minister Mohammed Shia al-Sudani (Reuters)
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Iraqi Budget Tests Relationship between Sudani, Political Parties

Iraqi Prime Minister Mohammed Shia al-Sudani (Reuters)
Iraqi Prime Minister Mohammed Shia al-Sudani (Reuters)

Controversy over Iraq’s budget has resurfaced, but this time from a political aspect.

As the government of Mohammed Shia al-Sudani insists that no major changes should be made in the budget for the current year 2023, the political parties see the budget as a gateway to stand up to the government, especially following the premier’s recent announcement of a cabinet reshuffle.

The budget suffers from a large deficit, but the political blocs found in this an opportunity for more quarrels with the government. In addition, setting the price of oil at $70 per barrel is considered by the political and parliamentary blocs as a risk with unsafe consequences. If prices fall, the deficit will increase.

Nonetheless, the most important political aspect for the political forces, including Sudani’s partners, is setting a budget for a period of three years, which would give the government absolute powers in terms of financial spending, perhaps without returning to parliament.

Sudani, for his part, seems self-confident, but not very assured about his partners. In his last television interview, he spoke about restoring the Iraqi people’s trust in the political system.

In fact, the measures that the prime minister initiated at the level of services and economic reforms began to yield positive results, the most important of which is the US dollar price, which has started to decline against the Iraqi dinar.

In this context, Economist Bassem Antoine told Asharq Al-Awsat that the exchange rate of the US dollar against the Iraqi dinar “will return to the official rate set by the government after the approval of the financial budget.”

He added: “There are those who exploited the dollar file over the past months,” noting that the measures adopted by the government and the central contributed to stopping the rise of the dollar.



Turkish Manufacturing Sector Contracts Further in March, PMI Shows

Shoppers walk through the spice bazaar in the Eminonu district of Istanbul on April 1, 2025. (Photo by Ed JONES / AFP)
Shoppers walk through the spice bazaar in the Eminonu district of Istanbul on April 1, 2025. (Photo by Ed JONES / AFP)
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Turkish Manufacturing Sector Contracts Further in March, PMI Shows

Shoppers walk through the spice bazaar in the Eminonu district of Istanbul on April 1, 2025. (Photo by Ed JONES / AFP)
Shoppers walk through the spice bazaar in the Eminonu district of Istanbul on April 1, 2025. (Photo by Ed JONES / AFP)

Türkiye's manufacturing sector contracted further in March, with output and new orders continuing to ease amid difficult market conditions both domestically and internationally, a survey showed on Wednesday.
The Purchasing Managers' Index (PMI) slipped to 47.3 from 48.3 in February, marking the lowest reading since October last year, survey compilers S&P Global reported. A PMI reading below 50 indicates a contraction in activity, Reuters reported.
March marked the 21st consecutive month of declining new orders, with the slowdown being the most pronounced since last October. New export orders fell at the fastest pace since November 2022.
"Challenging market conditions both at home and abroad meant for further moderations in output and new orders in March as Turkish firms struggled to secure business," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
Despite the downturn, there were signs of stabilization in some areas. Inventory levels held steady after 10 months of depletion, and suppliers' delivery times improved for the first time in six months, reflecting reduced demand for inputs.
Inflationary pressures eased slightly although currency weakness continued to drive up costs. Employment in the sector also saw a slight reduction for the fourth consecutive month, though the decrease was the smallest so far this year.
Manufacturers remain cautiously optimistic about future output, hoping for improvements in new orders and demand from the construction sector over the coming year.