Operation to take Mosul back from ISIL disrupts Erbil’s economy

CCTV News

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Not long ago, the future looked bright for the Kurdistan Region of Iraq (KRI). Propped up by oil revenues and tourism – the KRI had become the most prosperous part of the country.

Today, oil prices are half what they were. Tourism and foreign direct investment have all but disappeared as coalition forces fight Islamic State militants.

CCTV’s Natalie Carney reports the story.
Follow Natalie Carney on Twitter @NatalieCarney77

Operation to take Mosul back from ISIL disrupts Erbil's economy

Operation to take Mosul back from ISIL disrupts Erbil's economy

Propped up by oil revenues and tourism - the KRI had become the most prosperous part of the country. Today, oil prices are half what they were. Tourism and foreign direct investment have all but disappeared as coalition forces fight Islamic State militants. CCTV's Natalie Carney reports the story.

In 2014, Baghdad cut off the region from its 17 percent share of oil revenue then worth $14 billion.

A controversial pipeline to export oil to Turkey quickly became Kurdistan’s only lifeline.

Since then, ISIL has moved in taking over neighboring Mosul and sending thousands fleeing.

The estimated debt facing the Kurdish government has surpassed $18 billion.

The region’s worsening economy is noticeable on the streets of Erbil shuttered shops, bankrupt shopping centers the excitement of once bustling market places gone.

According to the Kurdistan Regional Statistics Office, the poverty rate has risen from three percent in 2013 to 12 percent.