Iraq maintains its credit rating with a stable outlook
Iraq maintains its credit rating with a stable outlook
2023-09-05 02:11
Shafaq News/ A report by Standard & Poor’s Credit Rating Agency (S&P) revealed that Iraq maintained its credit rating at B – / B with a stable outlook, with an emphasis on financial and economic stability.
The report, which was approved by the Iraqi Ministry of Finance and its results distributed in a statement received by Shafaq News agency, was mentioned; That “the new classification was a reflection of the policy of continuous economic and financial reforms pursued by the Ministry of Finance, in addition to maintaining the level of foreign currency reserves that exceed the external public debt and fulfilling other external financial obligations as a result of the stability of crude oil prices.”
According to the statement; The report adopted several indicators in its classification, the most important of which are: the Iraqi parliament’s approval of the tripartite budget for the years (2023, 2024, and 2025), which aims to revive infrastructure projects and economic needs, adding that the formation of the government at the end of 2022 led to a state of political stability.
And the report continued, “The prediction of a large surplus in the current account, within the economic expectations, will add to the already strong foreign currency reserves, which works to support Iraq’s external capabilities to service the debt during the next 12 months.”
The agency predicts that economic growth will reach 2.6% annually, during the years 2023-2026, which is linked to an increase in oil production and its repercussions on growth in the non-oil field, in addition to a decrease in annual inflation rates to 4% in July 2023 after it was 5-6% during The years 2021 and 2022, which is due to government measures in revaluing the currency, controlling prices, and government support for food and energy prices.
While the agency’s report indicated the possibility of improving the credit rating of Iraq in the event of a high rate of economic growth, diversification of the public financial revenues of the oil and non-oil state, an increase in the per capita share of national income, and the continuation of financial and economic policy reform measures.
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