World Bank: Iraq's economy in need of drastic reforms

11/18/2015 0:00

Baghdad, Omar Abdel-Latif,
the World Bank advised the government to make major economic reforms during the next phase, to spare the Iraqi economy to be vulnerable to shocks, external crises in the long term, with the parliamentary finance committee Mazhb him supported the World Bank, describing the situation in Iraq and economic b »is very deteriorating »and he needed radical reforms.

He said the World Bank representative in Iraq, Robert Abu quality in a question raised by the« morning »via the Internet, that the austerity measures taken since the beginning of 2015, the fact that Iraq faced serious and urgent challenges, stressing that the drop in world oil prices and the war on gangs «Daash» terror led to a sharp deterioration in economic activity, public finance and balance of payments of the Iraqi state.

He said Abu quality that there is a need to cut costs and enhance revenues and contain the deficit in 2016 measures, stressing the need to take government austerity measures, especially with the possibility of turning the situation Financial to «darker» than expected, as much as the export price of oil at $ 56, generates a deficit of 10 per cent of GDP.

And between Abu quality that despite the expectation of higher oil exports, but there are challenges to the Iraqi government does not stop in front of addressing only the current crisis, but also provide significant economic reforms to make sure that Iraq's economy will not be vulnerable to shocks, external crises in the long term.

The Supreme religious authority has stood up again and through the Friday sermon on 06.11.2015 in a row reforms, refusing to circumvent them under the pretext of «the auspices of the constitutional path».

For his part, supported the Finance Committee's decision in the House of Representatives Ahmed al-Haj is the view of the World Bank in his advice to Iraq, describing the economic situation of the country, whether financial or monetary policy level or credit Pal »very deteriorating» and needs to radical reforms.

Haj said in a statement singled out by «morning», said the credit rating of Iraq is very weak, indicating that «no country or institution international gives Iraq loans, but high benefits of large and guarantees», warning of all loans obtained by Iraq in the field of consumption, viewing it as «a danger to the country and deferred tax paid by future generations».

The decision of the Finance Committee, said the financial policy of the government based on unilateral economy Source which is oil, noting that such a thing is causing volatility in overall revenues when oil prices rise or fall, and thus The International Monetary Fund and the Construction Bank recommended a radical government reforms and measures in multiple sources of revenue and reduce expenditure and try to find non-dependence on oil, economic alternatives for the advancement of the economic reality of the country.