This study focuses on the relationship between indicators such as investment in infrastructure, human capital development, development of non-oil sectors, and economic growth indicators. It relies on analysis of secondary data from official sources, namely Central Bureau of Statistics and Central Bank of Iraq. It uses a descriptive analytical approach to evaluate the development of indicators of aggregate supply (unemployment, inflation, fixed capital formation) and economic growth (gross domestic product, national income). The results show that aggregate supply policies contributed to achieving fluctuating economic growth, but this growth was not sustainable due to structural challenges such as excessive dependence on oil, administrative corruption, security fluctuations with declining growth, high unemployment rates (reaching 14.89% in 2022), and inflation (53.1% in 2006). On the other hand, infrastructure investments recorded a noticeable improvement during periods of high oil prices, but they did not translate into actual economic diversification. The research concluded that the effectiveness of aggregate supply policies in achieving sustainable development was weak due to the structural fragility of the Iraqi economy, as well as the high rates of unemployment despite oil growth, which reflects the failure of policies to create job opportunities outside the public sector.
Khamees et al. (Tue,) studied this question.