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Thursday, January 15, 2026

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HomeEconomyIraq Faces Growing Heatwave Costs as Record Heat Strains the Iraqi Economy

Iraq Faces Growing Heatwave Costs as Record Heat Strains the Iraqi Economy

Iraq faces growing heatwave costs as record heat strains the Iraqi economy. Temperatures are soaring past 115°F in several regions. As the heat intensifies, it disrupts power, cuts farm output, and reduces labor efficiency across the country. The situation continues to worsen, with massive pressure on Iraq’s economy and government resources.

Additionally, Professor Nawar al-Saadi, an expert in international economics, warns that the financial impact of extreme heat is no longer a theory. He explained that the heatwave is now draining Iraq’s budget. It also affects public services and limits growth.

Moreover, electricity use has surged to all-time highs, pushing Iraq’s power grid past its limits. However, the system only works at about 60% capacity. This shortfall forces the country to import more electricity and fuel. These imports must be paid in dollars, worsening financial pressure as oil revenue declines.

Meanwhile, the farming sector suffers heavy losses. Water shortages from Turkiye and Iran are reducing river flows. Intense evaporation under the scorching sun lowers harvests. Experts estimate that crop yields dropped by 15% in several areas. To fill the gap, Iraq has increased food imports. This move raises demand for foreign currency and puts more stress on the already fragile dinar.

“The climate crisis is now a financial crisis,” al-Saadi said. “It drives up food imports and weakens our currency.”

At the same time, hospitals and clinics are feeling the impact. They are handling more patients suffering from sunstroke, dehydration, and water-related diseases. Rising demand for care, combined with shortages in equipment and staff, is pushing costs higher for the health sector.

Weather data shows that eleven Iraqi cities ranked among the fifteen hottest places in the world in the past 24 hours. This extreme weather is forcing local governments to take urgent steps. Several provinces — including Basra, Dhi Qar, Maysan, Wasit, Karbala, and Babil — have cut work hours or closed public offices entirely. Other areas like Saladin, Diyala, and Al-Muthanna are following similar actions.

Health officials have urged people to avoid sunlight during the hottest part of the day. They recommend drinking plenty of water and following medical advice to stay safe. Still, the strain from this heatwave remains serious.

Iraq faces growing heatwave costs as record heat strains the Iraqi economy. The country must act quickly to prevent deeper economic and social fallout.