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 upheld Mazhb him, the World Bank, describing Iraq's economic status: »very deteriorating» and he needed reforms radical.

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 the deterioration sharp 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 that the financial situation turns into a «darker» than expected, as much as the export price of oil at $ 56, What 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 in front of 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 «constitutional path care».

For his part, it endorsed the decision of the Finance Committee in the House of Representatives Alhaji Ahmed is the view of the World Bank in his advice to Iraq, describing the economic situation of the country, both on fiscal policy or the level of cash or credit Pal »deteriorating very» and it needs 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 «threat to the country and deferred tax paid by future generations.»

He said 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 therefore, the International Monetary Fund and the Construction Bank had recommended the government reforms and radical measures in the multiplicity 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.