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Kurdistan’s Widening Income Gap: Expenditures Outstrip Earnings

The Iraqi national census and socio-economic surveys published by the Iraqi Ministry of Planning, in coordination with the Kurdistan Regional Government’s (KRG) Ministry of Planning, have been released separately and without adequate contextual analysis. While the Kurdistan Statistics Office has released more detailed provincial-level data, these figures are presented in nominal and absolute terms, limiting their interpretative value. For meaningful analysis, such data must be contextualized to understand its scale and implications.
Although the increased availability of detailed data allows for more thorough and advanced modeling, this report analyzes two key economic indicators published by the Kurdistan Statistics Office: monthly income and monthly expenditure. Though published separately with minimal interpretation, these datasets together reveal concerning trends regarding affordability and living standards in the region.
Here are the published data points:
Average Personal Monthly Income:
- Erbil: 266,000 IQD
- Sulaimani: 259,000 IQD
- Duhok: 177,000 IQD
Source: Kurdistan Statistics Office
Basic Monthly Expenditures per Individual (2024):
- Erbil: 323,700 IQD
- Sulaimani: 300,000 IQD
- Duhok: 266,400 IQD
Source: Kurdistan Statistics Office
Income-to-Expenditure Analysis
By calculating the income-to-expenditure ratio, we can better assess the economic challenges facing residents:
- Erbil: 266,000 / 323,700 ≈ 0.82
- Sulaimani: 259,000 / 300,000 ≈ 0.86
- Duhok: 177,000 / 266,400 ≈ 0.66
Kurdistan: Income & Expenditure Analysis
Monthly Income vs Expenditure (IQD)
Income-to-Expenditure Ratio
These figures clearly indicate a deficit, as average incomes fall short of covering basic monthly expenditures in all three provinces, which is a concerning trend that warrants immediate attention from policymakers.
Despite these alarming indicators, the current administration under PM Masrour Barzani is pursuing increased privatization of services, potentially exacerbating affordability issues for residents. The implications of these policies will be examined in subsequent reports on The National Context.
For additional context, let’s compare these figures to selected European countries and Turkey (income, expenditure):
Income-to-Expenditure Ratio Comparison
With income-to-expenditure ratios between 0.66 and 0.86, households across Kurdistan's three main provinces face significant income shortfalls relative to basic living costs. This economic reality likely forces residents to rely on supplementary income sources, savings, debt, or external support to meet their basic needs.
In contrast, the ratios observed in European countries (1.5-2.0) indicate that average incomes there comfortably exceed basic living costs, providing households with substantial disposable income. Similarly, Turkey demonstrates a relatively healthy ratio (~1.75) comparable to several European nations.
These findings suggest an urgent need for economic policy interventions in the Kurdistan Region to address the growing affordability crisis and improve residents' quality of life.