Iraq's Oil Economy Should Sustain and Encourage Growth in Non Oil Economy, International Monetary Fund Says

Iraq, July 20, 2016

The Iraqi Government needs to create fiscal space to pay suppliers and international oil companies.

Christian Josz, Iraq’s Mission Chief for the International Monetary Fund (IMF), has announced that Iraq’s oil sector has grown by 13% in 2015 and 20% from January to May in 2016.

However, this economic growth has not been the case for Iraq’s non oil economy which has contracted 19% during 2015 and is expected to experience negative downturns in the coming months.

Christian Josz emphasised the role of oil to support the broader economy in Iraq, “By maintaining fiscal discipline, [the government] will create the fiscal space to pay their suppliers and international oil companies on time, which is essential to maintain financial sector stability and oil production.”