How would the economies of Saudi Arabia and Iraq be affected if people in other countries stop using as much oil as they do today
If people in other countries were to stop using as much oil as they do today, the economies of Saudi Arabia and Iraq would likely be significantly impacted. Both countries are heavily reliant on oil exports as a major source of revenue, with oil accounting for the majority of their exports and government revenues.
If demand for oil were to decrease, the price of oil would likely drop, leading to a decrease in revenue for both Saudi Arabia and Iraq. This would result in a significant budget shortfall for both countries, as well as a decrease in overall economic growth. In Saudi Arabia, this could lead to cuts in government spending and potentially have negative effects on the country's overall economic stability. In Iraq, where the economy is already strained due to ongoing political instability and conflict, a decrease in oil revenue could further exacerbate the country's economic challenges.
Additionally, both countries rely heavily on oil-related industries for job creation and economic development. A decrease in demand for oil could lead to layoffs and unemployment in these industries, further impacting the economies of Saudi Arabia and Iraq.
Overall, a decrease in global demand for oil would likely have significant negative effects on the economies of both Saudi Arabia and Iraq, highlighting the importance of diversifying their economies away from oil dependency.