IMF: Iraq’s economy to shrink only 0.5% in 2014

IMF: Iraq’s economy to shrink only 0.5% in 2014

10/12/2014 12:09 GMT

IMF - Iraqs economy to shrinkBAGHDAD – and babysit – The International Monetary Fund, said that “it is expected to shrink Iraq’s economy, which depends mainly on oil 0.5 percent this year,” which is much lower than the previous forecast of the Fund two months ago contraction of 2.7 percent.
Fund attributed the decline in output to rise to organize an Islamic state in northern and western Iraq, but it seems that the latest estimates were based on the high numbers of oil production and exports in the country.

The International Monetary Fund said in a statement, seen by “public opinion” it “after talks with Iraqi officials that it was expected that oil production up to 3.3 million barrels per day in 2014, up from 3.1 million in 2013 with exports continued at levels in 2013 amounting to 2.5 million barrels per day “.

Fund said that “growth is likely to recover to about two percent in 2015 with the increase in production and exports of oil with the support of the recent agreement between the central government and the KRG authorities on oil exports and payments budget.”

Under the agreement, which is expected to come into effect in January, will be exported 300 thousand barrels per day of Kirkuk oil through a pipeline stretching across the Kurdish region to Turkey in addition to 250 thousand barrels per day from the Kurdistan region of fields.

The economic downturn this year is the first of its kind since the invasion of the US-led invasion of Iraq in 2003 and in the wake of a growth rate of 4.2 percent in 2013.

The IMF said that falling oil prices and declining revenues contributed to the reduction of foreign reserves to $ 67 billion from about $ 77 billion at the beginning of the year. ”

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