The latest plunge in oil prices has dealt a heavy blow to Iraq's stagnating economy, threatening the new government's ability to rebuild after the war with the Islamic State group and provide basic services to areas roiled by recent protests. In Iraq's oil-rich south, meanwhile, which was spared from the war's devastation, protests have erupted in recent months over unemployment and poor public services. "We were surprised by the plunging oil prices and we have fallen into a big problem," said lawmaker Haneen al-Qado, who chairs parliament's Economy Committee. When oil prices started to recover in 2017, the government began paying installments again, but only for the projects that were mostly completed. He called for a major overhaul of the economy that would promote investment and lessen the country's reliance on oil.

Source: ABC News January 01, 2019 06:13 UTC