Expectations of an Iraq suffered economic recession in 2016


Sunday, December 27 0.2015

Finance Committee in the Iraqi Council of Representatives predicted, today's move the Iraqi economy from the contraction phase to the recession over the next year, noting that oil revenues and other resources do not believe in only a quarter of the budget in all its clauses.

Said the Finance Committee rapporteur Ahmed al-Haj in a press statement that it is difficult to achieve what planned in the budget of imports unexpected, which is 84 trillion Iraqi dinars (71 billion dollars) and the price of a barrel to $ 45, "explaining that the dollar decline to one barrel of oil leads to increased deficit extra billion dollars.

He acknowledged the Iraqi Council of Representatives last week, the majority of the financial budget for the year 2016, amounting to (105 trillion Iraqi dinars) or approximately ($ 90 billion), with a deficit of 25 trillion dinars ($ 21 billion) and the size of imports expected value of 84 trillion dinars (71 billion dollars).

He said al-Hajj, the economic crisis faced by the Iraq will increase next year and turn of contraction phase to the recession, which is a critical stage in a country's economy, pointing out that according to current oil prices, Iraq can secure a quarter of the budget for fiscal 2016 only amounting to 105 trillion dinars.

He said the decision of the Finance Committee that there are 63 trillion Iraqi dinars ($ 53.3 billion) would be entitled to be paid next year, represented by Bill salaries and retirement, premiums religion and international obligations.

The Iraq faces severe economic crisis due to low oil prices in the international markets, which depends on imports by 90%.

Crude oil prices have fallen by 60%, during the months of 19 years, bringing the price of a barrel of oil below US $ 45, down from US $ 115, through the year 2013.