The IMF expects growth of economies of Arabic

2017/04/15 (00:01 pm)


I expected an economic report data, the recovery pace of economic activity in the Arabic States and 2.7% rate of growth over the next year (2018, including Iraq).

According to the report issued by the Arab Monetary Fund, Arabic oil exporting countries will see high growth to 2.3% as a result of oil production volumes return previous paths and high world prices.

As the expected positive impact forecasts attributed to undo the deflationary impact of fiscal discipline policies on levels of demand, adding to expectations of a relative improvement in internal conditions for some of those countries, including Iraq.

Report April version of "Arab economic prospects", the expected improvement in the economic performance for the next year, including the Gulf States and other oil-exporting Arabic countries to 2.2% and 3% respectively.

And Arabic oil-producing economies, the decline in revenues as a result of declining crude prices on world markets, while Arab States his consuming security tensions as a result of revolutions and wars and their consequences for neighboring countries.

According to the report, economic activity will be further improved in the importing countries to oil up the growth rate to 4.1% by increasing external demand due to improved global economic activity, boost exports and investment levels.

The Fund predicted continued sluggish activity of Arabic economies through 2017, and recorded growth of around 2.3%, as a result of the declining growth rate of oil-exporting countries to 1.8% due to lower quantities of oil under an OPEC agreement.

And inflation expectations in 2017 and 2018, the report drew the rate will be influenced by a range of local factors, including continuing to take measures designed to streamline support and application of VAT, plus other new taxes such as a selective tax.

The report said that in light of the above factors, it is expected that the inflation rate in Arabic countries during the current year 9.8%, and about 9.6% in 2018.

The IMF advised Iraq to reduce spending and activate other sectors out of the current financial crisis, recently confirmed that the Iraqi Government implemented the financial correction program stipulated in the credit, standby agreement will be able to pay its debts.