The IMF expects limited growth of Iraq's economy in 2017

2017/3/18 14:56

{Int: Euphrates News}

International Monetary Fund predicted Saturday, limited growth in the economy for this year, due mainly to abide by OPEC's agreement to cut production of crude in the Organization members.

The IMF said in a statement his visit was followed by tracking mission to Oman, the capital of Iraq's economy activity remains limited in 2017 because of reduced oil production by 1.5% under the agreement reached by the Organization of petroleum exporting countries {OPEC}, modest recovery for non-oil sector.

OPEC agreed in November to cut total production by 2016 by 1.2 million barrels a day, starting January 2017, to restore the balance between supply and demand, thus improving oil prices.

Iraq agreed-the second largest producer in the Organization to reduce its production rate of 210 thousand barrels per day.

The Fund noted that the real growth of GDP in 2016 11% Iraqi, supported by a significant increase in oil production that has benefited from previous oil investments.

Economic Observatory was to the Middle East and North Africa of the World Bank, predicted that Iraq's economy has been recovering to 7.2% growth in 2016.

Macroeconomic, exposed to risks related to the global environment and social and political developments review.

As the pace of global economic growth or decline continued abundance of world oil supply, could create downward pressure on crude prices, thus new pressures on the fiscal deficit and foreign transactions.

The Iraqi Government and experts held the IMF discussions in Oman, Jordan, from 5 to 17 March, about article IV to 2017, the second revision of the standby credit agreement with Iraq.

Standby credit agreement aims to correct the balance of public finances and the external Centre balance, improving public financial management, while protecting social spending.

The Fund confirmed that Iraq hurt by ISIS, gangs of the sharp decline in world oil prices, the Government has responded to the financial crisis, and balance-of-payments crisis, a major financial correction, but necessary, supported by financial assistance from the international community.

Christian said the Fund's mission chief coconut Iraq, the sharp decline in oil prices caused by low total international reserves of Iraq from 53.7 billion us dollars at the end of 2015 to level remains comfortable, $46.5 billion u.s. dollars, at the end of December 2016.

The total public debt rose from 32% to 64% of GDP in 2014-2016, "and credit growth has slowed and non-performing loans rose at State-owned banks and private banks dramatically in 2016."

The statement drew attention to the need for further reforms to create fiscal space for growth, and strengthen the business environment, reduce corruption, and reform of the banking sector to support private sector-led growth and diversification of the economy.

And start the Iraqi Government and International Monetary Fund experts discussions on the second revision of the standby credit agreement.

These discussions will continue during future spring meetings of the IMF and the World Bank between 21-23 April, in Washington, d.c.

Iraq was concluded and the IMF in may 2016, after several days of meetings held in the Jordanian capital, granting Iraq a loan financially worth 5.3 billion dollars up to 1.5% interest rate.

Iraq recognizes the initial share value of 634 million dollars last July.