Report: Iraq is going through the most serious economic crisis that threatens the entire future

Report: Iraq is going through the most serious economic crisis that threatens the entire future

08/08/2015 14:18 GMT

Report - Iraq is going through the most serious economic crisis that threatens the entire futureFollow-up – and babysit – currently undergoing Iraq the most serious economic crisis since 2003 has been threatening his future in full, and the reasons for this significant deterioration sharp decline in oil prices and the control of the organization Daash on the third of the area of Iraq (where many of the oil fields and refineries, local and foreign banks), and the breadth of administrative corruption and financial in the country, which has led to the reluctance of foreign investors to enter into the Iraqi market.
Although the 2015 budget of more than $ 100 billion, however, about 80% of this budget goes to operational expenses of salaries and retirement (pension) and daily expenses, either for investment is the amount does not exceed 20 percent of this budget is spent only on current projects not yet been completed, and even this small amount will not be available because of the country’s need to very large sums of money to buy weapons to counter the terrorist organization Daash.

In this context, “Business Insider” newspaper of America said that oil exports are the most important part now of the Iraqi economy, which accounts for about half of GDP of the country, and 90% of government revenues, adding that due to the adoption of state for oil, investors went to audit the conditions of the industry, amid differing circumstances at the present time.

The paper points out that on the positive side, it seems that the pump and export more of its oil, was expected, where nearly four million barrels per day, thanks to investments in production, and it seems that the Baghdad government currently has good relations with the Kurdistan Regional Government, does not adhere to the conditions 2015 budget agreement.

The paper adds that in spite of the above, however, the Iraqi oil industry, and the budget of the government, and lower oil prices, backfired, and as a result, the price of oil in the market needs access to the equivalent point, because the budget deficit is expanding, especially with the emergence of al Daash terrorist .

The paper believes that despite the improvement in the financial situation of Iraq after the withdrawal of American forces in 2011, the price of oil fell, and appeared organizing Daash, which impact on the Iraqi economy and placed in a semi-crisis, according to the International Monetary Fund, GDP of the country shrank by 2.9% in 2014, and the unemployment rate reached 25%.

And it draws the paper that the World Bank Iraq values ​​of the worst places in the private business world, in 2015, and that the Iraqi government is in talks with the International Monetary Fund for a loan worth $ 800 million, to finance some of the budget deficit, however, requires more fundamental reforms if it wants to achieve economic stability in the long term. \