The World Bank is expected to be the growth rate of the Iraqi economy during 2016 to 3.1%

Author: AB, BS
Editor: AB, BS

2016/01/18 18:10

Long-Presse / Baghdad
Expect the World Bank, on Monday, that the rate of growth of the Iraqi economy be during 2016, about 3.1% after reaching 0.5 in the last year, and attributed this to the recovery of oil sectors and non-oil and the presumption of diminished effects of appearance (Daash), as warned the exposure of the region's "high-risk" as a result of the possibility of escalation of conflicts and the continuing decline in oil prices, likely growth Middle East and North Africa's economy after the Iranian nuclear deal.

The World Bank said in a report received (range Press), a copy of which, "The growth rate in developing Middle East countries and North Africa continued at 2.5% in 2015," noting that "the accelerated pace of activity in most oil-importing countries compensated for the slowdown in activity in oil-exporting countries. "

The report added, "The decline in oil prices helped most oil-importing countries, to support the demand and allowed the government to reduce fuel subsidies," pointing to the "production and low investment in the oil sector and in the most oil-exporting countries, with the sharp decline in oil prices since mid-2014, and exposure Libya's economy for more pressure as a result of the ongoing conflict. "

Promised to the report, the signing of the agreement "a comprehensive plan of action common" to impose restrictions on Iran's nuclear program from the "Pivot developments in the region," stressing that "renewed optimism about the possible effects on the Iranian economy was born a great deal of interest among international investors."

The report emphasized that "the absence of references to the decline of the effects of conflict witnessed in the Middle East and North Africa in 2015," noting that "the number of people who left their country because of the conflict unprecedented."

The report predicted that "the growth rebound in Iraq to 3.1% in 2016, after reaching 0.5% in 2015," attributing it to "the recovery of oil and non-oil sectors."

The report, "The spending cuts will help to reduce the public budget deficit," explaining that "those predictions are based on the presumption of diminished economic impacts resulting from the emergence of (Daash)."

It favored the report, that "the increasing rate of growth in the Middle East and North Africa region to 5.1% in 2016, after the suspension or lifting of sanctions economic imposed on Iran, which will allow it to play a greater role in global energy markets," expected to "grow the Iranian economy strongly to score 5.8% compared with 1.9% in 2015, in the case of Iran has fulfilled its obligations under the agreement. "

Forecasts report, that "Egypt will witness a moderate growth of 3.8% in the fiscal year ending in June 2016, compared with 4.2% in the fiscal year that ended in June 2015," warning of "serious risks may be exposed to the region due to the possibility of escalation of conflicts and the continued decline in oil prices, and the failure to improve living conditions. "

The promise of the report, that "could trigger social unrest," asserting that "the continuing conflict has inflicted serious damage to economic activity in Iraq, Libya, Syria and Yemen as a result of the loss of life, and the departure of skilled workers, and the destruction of infrastructure, and impeding the movement of trade."

The report went on, that "countries that do not suffer from conflicts also faces challenges due to the impact of security risks and uncertainty of the political situation in the confidence of consumers, businesses and investors, after Egypt witnessed two governments in the second half of 2015, and the absence of a president for Lebanon since 2014".

It noted the report, that "the terrorist attacks on tourists in Egypt and Tunisia in 2015 damaged the tourism sector", stressing that "the depletion of flows of hard currency in Egypt from the introduction of the tourism sector in the recession, will lead to a weakening of growth, increasing shortage of foreign currency."

He concluded the report, that "the labor market in the region, the situation has worsened in comparison with other developing regions, have not improved since the Arab Spring uprisings," revealing "the arrival of the unemployment rate in Algeria, Egypt, Morocco and Tunisia to the highest of levels in 2010", they returned that "this It may contribute to social unrest. "