IMF: Iraq’s economy for the next year to grow at a rate of 2% with the increase in the production of oil exports
IMF: Iraq’s economy for the next year to grow at a rate of 2% with the increase in the production of oil exports
Wednesday, December 10, 2014 17:39
BAGHDAD / Baghdadi News / .. signed the International Monetary Fund and the growth of the Iraqi economy over the next year in 2015 at a rate of 2% {} with the increase in oil production and increase its exports supported the agreement, which was recently between the governments of the center and the Kurdistan region of Iraq.
According to a report of the Fund, “Iraq’s economy will shrink this year by 0.5% {} because of the resulting war against gangs Daash economic impacts.”
The report is likely deterioration of the growth in non-oil sector in Iraq since the conflict began with Daash, because of the destruction of infrastructure, and the obstacles to obtaining fuel and electric power in the country, as well as the decline in the confidence of the business community, and the disruption of trade.
He pointed out that “the arrival of Iraq’s oil production in 2014 is expected to {3.3} million barrels per day, and that of {3.1} million barrels per day in 2013 due to the oil infrastructure survival lies in the south of the country away from the control Daash, as well as with the situation in account of the production of the oil region of Kurdistan, “pointing out that” Iraq’s oil exports will remain at the same level in 2013 of $ {2.5} million barrels a day. ”
He noted that he “is expected to reach the growth rate of the economy next year {2%} with the increase in oil production, thus increasing oil exports, backed the agreement, which the federal government reached with the Kurdistan Regional Government, which will ensure its access to oil revenues, the source of the north, as well as facilitate the export Oil extracted from the Kirkuk oilfields, through the oil pipeline stretching in Kurdistan to the Turkish port of Ceyhan. ”
He explained that “the rate of inflation by the end of October in the Iraqi provinces, which are located outside areas of conflict reached on an annual {0.9% basis},” noting that “the Central Bank of Iraq has maintained linking the Iraqi dinar US dollar, with the difference between the US dollar in the market price dropped official and parallel to up to {2.6%} in September, thanks to the steps taken by the central bank towards the liberalization of the foreign exchange market. ”
He said the “high volume of Iraqi imports, accompanied by lower oil revenues, and the lack of converter foreign exchange from the Iraqi government and the Central Bank in order to finance government spending contributed to the decline of Iraq’s foreign exchange reserves of the {77} billion dollars by the end of 2013 to about {67} billion dollars by the end of November last. ”
The report continued that “the exploitation of the Iraqi government to the Development Fund for Iraq {DFI} and balances that have been converted from the fund to the central bank contributed to the decline in the fund balance of {6.5} billion dollars at the end of 2013 to {4} billion dollars last November.”
However, that “extra-budgetary spending and private security in Iraq, led to an increase in the budget deficit, which will reach more likely to {5%} of GDP,” noting that “the Fund’s staff team discussed with the Iraqi Ministry of Finance and the challenges associated with the formulation 2015 budget, which aims to address the ongoing extraordinary spending pressures, as well as a significant drop in oil prices. ”
The report went on, “as the supposed spending in the draft budget for 2015 is limited, we expect the decline in the budget deficit to 2 {%} only of GDP” .anthy 21 / l
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