Iraq.. Increasing fiscal deficit and rising public debt until 2026
Iraq.. Increasing fiscal deficit and rising public debt until 2026
2024-11-28 02:09
Shafaq News/ Fitch Ratings announced Iraq’s rating at “B-” with a stable outlook.
The agency said that Iraq’s rating of “B-” reflects its heavy dependence on basic commodities, weak governance and high level of political risks.
It also expected Iraq’s budget deficit to widen to eight percent of GDP in 2024, from two percent in 2023, and to an average of 12.4 percent over 2025-26.
Fitch expects Iraq’s government debt-to-GDP ratio to rise to 47.7 percent by the end of 2024, reaching 56.5 percent by 2026 as the government increases borrowing to finance the high deficit.
Fitch is one of the three largest global credit rating agencies, along with Standard & Poor’s (S&P) and Moody’s. Founded in 1914, it is headquartered in New York and London.
The agency provides credit ratings that reflect the ability of governments and financial institutions to meet their obligations, helping investors and institutions assess risks.
Ratings range from “AAA” (highest and safest) to “D” (default), and help measure investment risk.
Fitch also covers ratings on government bonds, sovereign debt, corporates, financial institutions, and real estate finance, and its reports are a key reference for global investors in determining investment and market risks.
The agency relies on accurate financial analysis that includes economic performance, public debt, political stability, and the global economic environment, making it a key player in global investment decisions and determining credit risks.
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