IMF expects deflation Iraqi economy
IMF expects deflation Iraqi economy
09/10/2014
Iraqi economy faces significant challenges due to the deteriorating security situation and control regulation (Daash) on vital areas of Iraq.
He said the latest report issued by the International Monetary Fund that the Iraqi economy will be subjected to shrink this year as a result of military operations, is expected to exceed the growth rate of gross domestic product this year from 2.7%, while the indicated expectations last April to a growth rate of up to 5.9%.
He said the IMF report, “The fighting in the north of Iraq reflected negatively on the growth of non-oil revenues, and there are expectations disorder Iraqi oil exports to world markets as a result of the escalation of fighting could lead to a rise in the price of a barrel of oil by up to 20% of its current price .
The expert said Bassem Jamil Antoine economy that falling rate of Iraqi oil production has led to a decline in the growth rate, as well as the failure to approve the budget impact on the investment side which is reliable in achieving growth.
Antoine explained that what matters worse is the control (Daash) on the provinces of Nineveh, Anbar and Salah al-Din, which are areas characterized by industrial and agricultural production, has pulled out of these provinces from the forces of production, which turned out to be (Daash).
Antoine also pointed to the large wave of displacement, as the numbers swelled to two million displaced about 500 000 of them are young people who have left the work areas and shifted from producers to consumers.
He explained Antoine that Iraq’s budget burdened military expenditure from the salaries of the army and popular mobilization and expenditure of Supply and arms and other and become those expenses a burden on the state budget, criticizing the Iraq policy economies that depend on oil only and any defect in prices and production will affect the general budget and the Iraqi economy.
He pointed to the economic analyst Majid picture to the economic challenges facing Iraq as a result of the low price of a barrel of oil globally and also shrinking Iraqi production, calling for a policy of austerity in the new budget, and the creation of a development bank financed in accordance with the mechanisms do not depend on the government.
Image stressed the need to fight corruption, as corruption if it persists in the state apparatus will not play for Iraq List, as he put it.
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