ANALYSIS OF THE RELATIONSHIP BETWEEN CRUDE OIL PRICES AND ECONOMIC PERFORMANCE INDICATORS IN IRAQ FOR THE PERIOD (2004-2021)

Global economies are significantly affected by the volatility of crude oil prices. The economies of oil-producing countries may thrive when crude oil prices are high or stable within a range that achieves their desired goals, driving development and accelerating economic growth. This is achieved through targeted expansionary policies that promote local and foreign investments in infrastructure development. Conversely, the opposite occurs when prices decline. The study found that sharp fluctuations in oil prices lead to varying economic and social impacts, affecting economic growth, unemployment rates, and inflation. It also recommended the possibility of achieving sustainable economic growth by the government exerting more efforts in diversifying income sources, reducing heavy dependence on oil, and enhancing adaptability to price fluctuations.