The World Bank assesses the situation of Iraq and the future of its economy
The World Bank assesses the situation of Iraq and the future of its economy
Posted, 2019/11/5 11:49
The World Bank issued its report on Iraq and its outlook from the previous years.
The report showed the following results:
1. In the absence of structural reforms and accelerated reconstruction, Iraq’s recovery may be short-lived, and growth is expected to continue its positive path and peak at 5.1 per cent in 2020.However, growth is expected to slow to 2.7 per cent. cent in 2021.
2. higher spending with lower oil prices will lead to the expected fiscal deficit at 3.3 percent of GDP in 2020 and will remain in a similar scale in 2021. It is expected that the ongoing fiscal deficit will raise public debt to more Of 48 per cent of GDP by 2021.
3. Lower oil prices and increased imports will keep the current account balance in deficit, with GDP expected to average 4 per cent over the period 2020-2021. This is expected to be financed in part by the accumulation of previous international reserves. As a result, the CBI’s foreign reserves are expected to fall to an estimated US $ 51 billion (or 5.7 months of imports) by 2021.
The report also illustrates a range of challenges facing Iraq
– a fragile political environment
– total dependence on revenues. Oil
– lack of services, corruption and lack of jobs
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