(IMF) is expected to increase economic growth in Iraq by about 9% and calls on it to support the non-oil sectors
International Monetary Fund (IMF) is expected to increase economic growth in Iraq by about 9% and calls on it to support the non-oil sectors
Author: HAA
Editor: NK 22/03/2013 12:14
Term Press / Baghdad
International Monetary Fund predicted to witness economic growth in Iraq during the current year 2013 increased by 9 percent due to the rapid growth of the definitive oil in the country, while calling the Iraqi government to focus private sectors other than oil to secure the balance of economic not be subject to oil production and fluctuations world prices.
The Fund in a report issued on Thursday following the end of consultations in Amman between a delegation of the Fund and the Iraqi delegation headed by VMware Planning Ali Shukri, and seen (long-Presse) it said that “is expected to grow the Iraqi economy rate of 9% through 2013, especially in light of the increase Rapid oil production significantly, “noting that” economic growth rate of 8% during the year 2012, reinforced by higher oil production. ”
He explained the fund that “We hope the high rate of economic growth in Iraq during 2013, again with expectations increasing the rate of oil production by 10% to 3.3 million barrels a day,” he underlined that “Iraq after ten years of U.S. invasion succeeded in maintaining economic stability Despite the political and security environment difficult. ”
The Fund pointed out that according to a field survey conducted by the “inflation has declined over the year 2012 to 6% while the central bank reserves of $ 70 billion,” stressing “the need to reduce the size of inflation during the year 2013.”
But the fund said in a statement that “Iraq needs to better ways to control government spending and work to end the spending outside the budget,” calling “the Iraqi Central Bank to tighten control and work on the launch of the foreign exchange market is slow.”
The Fund said that “Iraq also needs to address the important challenges to be able to create conditions growth rate high and continuously necessary to improve the standard of living for its people,” noting that “the economy is still suffering from weak structural sharp represented sector small non-oil as well as high unemployment and control public sector with less commercial work environment. ”
Fund called “the Iraqi government to do the formulation of a long-term strategy to promote the growth of non-oil sector and open up more opportunities for the private sector and open a wider range of private banks, which says that it constitutes damage to government-owned banks.”
The U.S. Agency for International Development predicted in (3 December 2012) that leads the Iraqi economy, the Arab countries within five years, stressing that Iraq possessed all the qualifications to be an economically strong state.
Iraq is trying for years to attract foreign capital to develop its economy in the fields of industry especially those related to oil and housing and oil and gas extraction, and to its need of funds for infrastructure development and reconstruction, but Mariqben contend that the lack of interest the state to the private sector and the absence of investment laws which guarantees for investors and the absence of Other laws are still obstacles to the development of the economy in the form required.
Iraq relies, which has the fourth largest oil reserves in the world, 95 percent of its annual budget on its oil exports and currently produces about two million and 900 thousand barrels per day, while issued up to two million and 200 thousand barrels per day.
The Iraqi parliament approved in October 2006, the Iraqi investment law which it was said at the time that he would open the doors to foreign investment, for providing a lot of facilities to foreign investors, but many foreign companies still hesitate because of fear of the security reality instability in Iraq, and as a result frequency investors to come has been amended law by the House of Representatives in October 13, 2009, and was the most important amendments to the law to give the right of the investor Iraqi and foreign ownership of land and property belonging to the state allowance determined in accordance special system.
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