The Impact of Global Oil Price Fluctuations on Household Spending Patterns in Iraq: A Field Survey Study in Baghdad and Basra

This study aims to analyze the direct impact of global oil price fluctuations on the ‎spending patterns of Iraqi households, focusing on a field survey study in the ‎governorates of Baghdad and Basra. The importance of the research stems from the ‎rentier nature of the Iraqi economy and its high dependence on oil revenues, which ‎makes it vulnerable to economic shocks whose effects are transmitted to the micro ‎level, that is, households. Although there have been previous studies on the impact ‎of oil prices on macro variables, there is a clear research gap in understanding how ‎households respond and adapt to these fluctuations at the level of their daily spending. ‎The study relied on the descriptive analytical approach with a quantitative design, ‎where data were collected from a suitable sample of 1500 completed questionnaires ‎from families in Baghdad and Basra. The questionnaire included demographic, so-‎cial, and economic information, as well as questions about household spending patterns and changes, their awareness of the impact of oil fluctuations, and the fiscal ‎adjustment mechanisms followed. The data were analyzed using descriptive statistics (frequencies and percentages) and cross-tabulations to explore relationships ‎between variables.‎ Key findings revealed a measurable impact of oil price fluctuations on Iraqi households' spending patterns. Low-income households showed a significant increase in ‎their spending on basic goods (such as food), while significantly reducing their ‎spending on luxuries and leisure. Recourse to borrowing has also been shown to be ‎a common coping mechanism, especially among retirees. The study confirmed that ‎the size of the family affects the extent to which it is affected, as larger families suffer from greater financial pressure in meeting basic needs. Overall, the majority of ‎households in both cities perceived a negative impact of oil fluctuations on their ‎livelihood stability‎.