The World Bank expects higher growth in Iraq to 3.1%
January 7, 2016


The World Bank predicted that Iraq is witnessing a rise in the growth rate to 3.1 percent by the year 2016 as a result of the recovery of oil and non-oil sectors. the World Bank also predicted high growth in the Middle East and North Africa to 5.1% in 2016 compared to 2.5% in 2015.

He attributed the global economic prospects report, the World Bank published, the increase to the anticipated lifting of economic sanctions on Iran which will allow them to play a bigger role in global energy markets.

While the World Bank predicted in a report that oil-exporting countries are experiencing also economic recovery, based on the assumption that stabilization in oil prices, but warned that the region is prone to serious risks due to the possibility of escalation of conflicts and the continued decline in oil prices and failure to improve living conditions which may give rise to social unrest.

The World Bank report stressed that ongoing conflicts damaging economic activity in Iraq, Libya, Syria and Yemen as a result of the loss of life and the departure of skilled labour and the destruction of infrastructure and impeded the movement of trade, however, the World Bank predicted a high growth rate in Iraq to 3.1% in 2016 compared to 0.5% in 2015 thanks to the recovery of oil and non-oil sectors.

He said that the forecasts were based on the assumption of economic effects resulting from the contraction of the emergence of gangs daash. Meanwhile, the World Bank report warned that weak growth in emerging market countries will affect global growth in 2016, expected to accelerate the pace of global economic activity with a modest pace as it is expected to reach 2.9% growth rate to 2016 compared to 2.4% in 2015.

According to the report, poor recovery of most of the major emerging market concern about the efforts to achieve the goals of ending poverty and promote common prosperity so that these States contributed to strong global growth during the past ten years. the report also warned at the same time, that indirect effects of major emerging market conditions weaken growth in developing countries.

He said the World Bank President Jim Yong Kim, commenting on the report, that "more than 40 percent of the world's poor live in developing countries where the rate of growth, saying developing countries should focus on building its capacity to withstand the weak economic environment and the protection of the most disadvantaged groups.

He noted that the reform of the governance and business environment may have substantial benefits could offset the effects of slower growth in larger economies. the rate of world economic growth rate has achieved less than expected 2015, due to falling commodity prices and the decline in trade and capital flows and fluctuations in the global markets. improved growth will depend in the future on the momentum of activity in high-income countries and stabilizing commodity prices and China's success in the gradual transition towards more growth model based on consumption and services.

The World Bank predicted that developing countries achieved a growth rate of up to 4.8% in 2016, and is less than indicated by previous forecasts but at the same time, the higher level of low growth which averaged 4.3% in 2015, also predicted that China will see further decline as the recession in Russia and Brazil in 2016.