Can withstand Iraq before economic storms?
November 1, 2015 0

Economists differed in opinion of them affirms that Iraq will not withstand the economic storm is missing for the ingredients that make it stand up for a long time and which will not exceed the finest over the next three years, the International report is a matter of pessimism and not hard.

A specialist in the management of State enterprises in crisis Harvard University, Jabbar Al-furaiji, warned of a sharp drop in Iraqi economic growth in 2016 and collapse and bankruptcy budget, due to the continued decline in global oil prices, uncontrolled, which exceeded the 65%//price rates for previous years.

Furaiji said, that "recent budgets for the Iraqi State has not been free of growing deficits and scary, noting that attempts and steps by the Government to cover this deficit is part of the complexity of the problem and her aggravations.

He stressed that "the sharp decline in economic growth rates in Iraq to 2015 and will be followed by more severe decline is expected in 2016 because of continuing low world oil prices uncontrolled which exceeded the 65%// Price rates for previous years and this drop shadow drawing clear features of the Iraqi economy, noting that "Iraq lost nearly 65% of the public budget rates due this fall and its dependence on oil facing the storm Centre and oscillation problems between the territory and the Elimination of terrorism, corruption and wastage in the constant Iraqi State institutions."

Friji, stressed that "bankruptcy or economic collapse indicators began to clear by rejecting the World Bank approved a loan to Iraq two months ago or more and try the new Iraq that is seeking to borrow $ 1.24 billion International Monetary Fund (IMF) indicating that still rounds of discussion by the IMF team and possibly refusal due to request IMF surveillance of economic policies in Iraq that does not augur well for any good or hope."

The "Ministry of Finance gave up its confusing in international bonds worth 6 billion for general budget support because of the high value of the State payments to the value of these shares, negative record plans of the Ministry of finance and State institutions on general budget support.

In describing economic analyst Mohammed dargham on IMF report predicted the bankruptcy of Iraq within five years by pessimist over reality.

He said, that "the report was not built on objective grounds entirely but it cannot neglect its data which confirms that Iraq is draining State resources quickly any specific characters of sustainable development and adopted entirely on oil wealth put him subject to external factors, however, and is unable to manage its resources in the form of lime."

He stressed the need to adopt policies that encourage the development of realistic alternatives within a time horizon and perspective that focuses on religious tourism and transport sectors by as early solutions within the time horizon. "

"Iraq can emerge from the tutelage of world oil prices if the rational management of other resources but continuing administrative and financial corruption and political prevented, adding only that" any economic reform must precede political reform and a real war on the financial and administrative corruption that its existence will not be able to pass any reform policy. "

By last count, an expert on economic, Thunder Twigg, an IMF report that pessimistic analysis westatiki.

Twigg said, the World Bank predicted the bankruptcy of some oil-producing countries such as Iraq and Libya and Algeria in less than five years, and the United States predicted a collapse of the Iraqi economy, and initially it pessimistic analysis westatiki the privilege presumably survival as variables, adding, that the economy is not seen as an absolute, abstract, digital economy, no matter how simple it is in constant turmoil and son watch , But we must not underestimate such speculation and not a hammer to hit our heads, we must exercise our heads so so weary and tire hands that carry these hammers. "

Twigg, called the Government in Iraq to listen to the greatest possible number of economists and economic heart table and exposing the Iraqi economy to major surgery and even dominant economic theorizing on economic decisions have not kept pace with the stage in order to not jeopardize the expected and not reliable. "

Iraq and Libya were considered some of the States of the Middle East would go bankrupt after less than 5 years because of low oil prices, according to the International Monetary Fund. Some Middle Eastern States such as Kuwait, Qatar and the U.A.E. it away from oil dependency towards other resources after the price has fallen by half in less than a year.

However, substantial deficit appeared in the budgets of the States as Iraq, Iran, Oman, Algeria and Saudi Arabia, Bahrain and Libya and Yemen, and this means that these States were working to diversify or not borrow so it won't have any money after less than five years. And the aforementioned States Iran might be able to hang on because no heavy reliance on oil, unlike Libya, and Yemen.

International Monetary Fund classifies Iraq and Libya and Yemen as fragile States because of territorial disputes. This has resulted in a decline in total domestic output and rising inflation. The Fund also warned that all oil exporting countries to cope with the low oil prices.