High growth rate in Iraq to 3.1% in 2016

By Mohammed Emad

07/01/2016 10:34

Brother - Baghdad
The World Bank predicted, that Iraq is witnessing an increase rate of growth to 3.1% during the current year 2016 as a result of the recovery of oil and non-oil sectors.

The World Bank also predicted high growth rate 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, published Bank, this increase is expected to lift the economic sanctions imposed on Iran, which would allow it to play a greater role in global energy markets.

Although the World Bank predicted in his report that the oil-exporting countries are also experiencing an economic recovery, based on the assumption of a stabilization in oil prices, but it warned that the region is at high risk due to the possibility of escalation of conflicts and the continuing decline in oil prices and the failure to improve living conditions which It could provoke social unrest.

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

He explained that the projections are based on the assumption shrinking economic impacts resulting from the emergence of Daash gangs.

On the other hand, the World Bank report warned that the weak growth in emerging market countries will affect the global growth in 2016, expected to accelerate the pace of global economic activity pace modest as it is expected that the growth rate up to 2.9% in 2016 compared to 2.4% in 2015.

The report said, the weakness of the recovery of most of the major emerging markets raises concerns about efforts to achieve the goals of ending poverty and promoting common prosperity as these countries contributed to the strong global growth over the past decade.

The report also warned at the same time, the indirect effects of the status of the main emerging markets will weaken growth in developing countries.

Said World Bank President Jim Yong Kim, commenting on the report, it said that "more than 40% of the world's poor live in developing countries where the growth rate fell, stressing the need for the developing countries focus on building their capacity to withstand the weak economic environment and the protection of categories the most disadvantaged.

He pointed out that the reform of corporate governance and business environment systems may have significant benefits may compensate for the effects of the slow growth in the larger economies.

The global economic growth rate has achieved a rate less than what is expected in 2015, due to falling commodity prices and the decline of trade, capital and the vagaries of global markets flows.

Improvement and growth will depend in the future on the continued momentum of activity in the high-income countries and the stability of commodity prices and the success of China in a gradual transition towards a more growth model based on consumption and services.

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