IMF: growth prospects remain positive in Iraq

8/24/2015 0:00

Baghdad Adel Hamoud
addressed the annual report of the International Monetary Fund recently, the economic situation in Iraq. Indicating, the Executive Committee of his reach information contained after consultation with the owners working in the country.

The report, seen by «morning» that Iraq is facing economic problems because of the Daash gangs terror «and the decline in global oil prices, dropping the total domestic public output actual in 2014 by up to 2.1 percent as a result of armed conflict, which the government waged against terrorism, while the production and export of oil has risen compared to its production and export in the year 2013 and expected to see total economic activity recovery, noting that this recovery will be increased by 0.5 percent thanks to the expansion of the oil sector .

He noted that oil prices caused the decline in Iraqi cash reserves globally, including those which exist in the Development Fund for Iraq, as it fell from $ 84 billion at the end of 2013 to $ 67 billion at the end of 2014, confirming the escalation of the financial pressures on the country expected to rise deficit with where from 5.3 percent last year to 18.4 percent of the local public output in the year 2015 as a result of weakness in oil prices and higher expenses related aspect of the humanitarian and security.

He praised the report to maintain its exchange rate policy, saying it was maintained well its stability, praising the steps liberalization exchange rate taken by the Central Bank that led to the decline in the expansion of the parallel market down to only 2 percent by the end of 2014. Impose new restrictions on exchange operations has led an important concern in the market leading to the parallel market expands further in the first months of this year, but the removal of these restrictions recently have helped in slowing down expansion to up to 4 percent in the month of July

The report concluded, that the prospects for growth in the medium level in Iraq remain positive, although it will not be the level of growth before the current crisis. This growth will be driven by the planned increase in oil production and growth in the field of non-oil-backed improvement expected the security situation and the application of structural reforms.

The Fund currently supports Iraq through rapid funding mechanism the amount reached 1.242 billion dollars.