Analysis of the impact of the real interest rate on the gross domestic product in Iraq for the period (2004-2020)

Abstract

The research aims to know the impact of the change in the real interest rate and its repercussions on the gross domestic product in Iraq for the period 2004-2020, with a statement of the basic concepts of each of the interest rate and GDP and the relationship between them. The research finds a number of results, including: the interest rates in general, including the real rates, are inversely proportional to the investor’s desire to invest. As a result, the volume of production increases, and the volume of GDP rises as a result. In the event of an increase in the interest rate, it will reduce the desire to make investments and thus reduce the size of the country's GDP.