"Cash" is expected to exacerbate the deficit and the debt Iraq 8/19
"Cash" is expected to exacerbate the deficit and the debt Iraq
Expect the IMF to increase the budget deficit of Iraq and the total debts this year as a result of the country's vulnerability to shocks and pressures by the significant decline in oil prices globally, and higher military spending in the face of the organization of the Islamic state , which controls large swathes of the country.
IMF said in the assessment of the economic situation of the Iraqi issued yesterday that he expects a big increase to the country's budget deficit in 2015 to 18.4% of GDP compared to 5% in 2014, the deficit ratio is expected to fall next year to 8.9%.
Iraqi and attributed the high budget deficit to the intensification of the financial pressure on the government, and falling foreign exchange reserves of $ 84 billion by the end of 2013 to 67 billion by the end of 2014.
According to the Fund data, the total Iraqi treasury revenue this year will reach $ 40.8 billion, up slightly from last year, which recorded 40.1 billion, in contrast, government spending rose at a great pace between last year and this year, as it moved from 45.4 billion to 59.2 billion.
Growth International Finance Corporation and suggest that Iraq's economy will grow this year by 0.5% compared to last year's contraction of 2.1%, but the IMF is expected to achieve a breakthrough in the country's economic growth next year to a record 7.6% and 8.1% in 2017 ratio.
Fund shows that growth prospects in the medium term in Iraq remain positive, but less compared to the years preceding the economic crisis currently experienced by the country, and says that the growth will be driven by increased oil production and the growth of non-oil sectors with the support of the structural reforms that the authorities in Baghdad has pledged to implement. However, the IMF warns that the risks surrounding the Iraqi economy remain high in view of the worsening conflict and political tensions and the weak implementation of the policies adopted. The Fund has approved days before financial support to Baghdad worth 1.242 billion dollars.
On the other hand, the Fund called on Iraqi officials to strengthen the fiscal position and adjust the debt in the short term, as Iraq's debt rose from nearly 39% last year to 70% currently, and expects that next year, rising to 74%, which means exceeded size indebtedness safe levels. The total value of Iraq's debt of $ 122.1 billion in 2015 compared to 87 billion in 2014.
The internal debt of Iraq, two-thirds of the total debt of about $ 64.5 billion, while foreign debt represents the remaining one-third the value of 37 billion.