Experts warn of continued decline in Iraq's manufacturing industry

ERBIL (Kurdistan24) – Despite efforts to bolster Iraq's manufacturing industry, experts are raising alarms over the sector's persistent decline due to inadequate planning and poor management. The government's failure to support the industry exacerbates these issues, threatening the country's economic diversification.

Fazel Gharawi, the head of the Strategic Center for Human Rights in Iraq, highlighted several obstacles facing the industry. Iraq currently ranks 82nd out of 126 countries on the industrial production index, a stark indicator of the sector's struggles.

In contrast, global leaders in manufacturing output include China with an annual output of $4.97 trillion, followed by Germany at $751 billion, India at $450 billion, South Korea at $426 billion, and Russia at $287 billion.

Gharawi reported that Iraq's manufacturing industry was valued at $4.75 billion in 2023, showing only a slight increase from $4.725 billion in 2022. However, this is a significant decline from 2019 when production levels reached $1.994 billion.

"Iraq has 4,000 factories across various industries, but most are inactive due to poor management, lack of planning, and inadequate marketing. The government's insufficient support further hampers the sector's growth," Gharawi said.

He emphasized the importance of the manufacturing industry as a crucial resource for the country's economy, advocating for the diversification of income sources beyond oil dependency.

As the industrial sector continues to struggle, experts like Gharawi urge immediate and strategic governmental intervention to revitalize manufacturing and ensure sustainable economic growth for Iraq.