The International Monetary Fund expects limited growth of Iraq’s economy in 2017

The International Monetary Fund expects limited growth of Iraq’s economy in 2017

03/18/2017 14:56

The International Monetary Fund expects limited growth of Iraqs economy in 2017{International: Euphrates News} predicted the International Monetary Fund on Saturday, limited the growth of the Iraqi economy for the current year, mainly because of the commitment agreement “OPEC” to reduce the membership of the Organization of crude oil production.
The IMF said in a statement following the visit carried out by the Mission follow him to the capital , Amman, to remain Activity Iraqi economy limited in 2017 due to reduced oil production by 1.5% under the agreement reached by the Organization of Petroleum Exporting Countries {OPEC}, and the recovery is modest non – oil sector.
It agreed “OPEC” in the November / November , 2016 to reduce the total output by 1.2 million barrels a day, starting from January / December 2017 a second, to restore the balance between supply and demand, thereby improving oil prices.
He agreed Iraq – the second largest producer in the Organization – to cut production at a rate of 210 thousand barrels per day.
Fund pointed out that the real growth of the gross domestic product of Iraq was 11% in 2016, supported by a substantial increase in oil production , which benefited from previous oil investments.
The Economic Observatory for the Middle East and North Africa of the World Bank, had expected to recover Iraq ‘s economy to grow 7.2% in 2016

and is under the overall Iraqi economy, risks related to the global environment and social and political developments and Daesh.
The decline in the pace of global economic growth , or the continued abundance of the global supply of oil, could create downward pressure on crude prices, and thus result in new pressures on public finances and the external account deficit.
The Iraqi government and the experts of the International Monetary Fund and the discussions were held in Amman , Jordan, during the period from 5 to March 17 / March of this, Article IV of 2017, and the second revision of the standby credit agreement with Iraq.
It aims to prepare the credit agreement, to correct the balance of public finances and the balance of the external position, and improving public financial management, while protecting social spending.

Fund confirmed, that Iraq was hit by Daesh gangs, and the sharp drop in world oil prices, the government has responded to the crisis of public finances and balance of payments crisis, a large corrects Mali, but necessary, supported by financial assistance from the international community.

The head of the IMF mission to Iraq Christian nut, said the sharp drop in oil prices caused lower gross international reserves of Iraq of 53.7 billion US dollars at the end of 2015 to a level still comfortable, of $ 46.5 billion, at the end of December / December 2016.
He added that Total public debt rose from 32% to 64% of GDP in the period 2014-2016, “and slowed credit growth and rising non – performing loans has largely state – owned banks and private banks in 2016″.
It pointed out the need for further reforms to create fiscal space inclusive growth, and enhance the business environment, reduce corruption, and reform of the banking sector to support growth led by the private sector, and diversification in the economy.
The Iraqi government and the experts of the International Monetary Fund and begin discussions on the second revision of the standby credit agreement.
And will continue these discussions in the coming spring meetings of the International Monetary Fund and the World Bank in the period between April 21 to 23 / April next, in Washington , DC

and concluded Iraq and the International Monetary Fund in May / May 2016, an agreement after meeting for several days held in the Jordanian capital, to grant Iraq financial loan of 5.3 billion dollars with an interest rate of up to 1.5%.
Iraq and received an initial installment worth $ 634 million in July Almadi.anthy