World Bank predicts surplus in 2018 budget by 1.2%
World Bank predicts surplus in 2018 budget by 1.2%
The World Bank forecast fiscal year 2018 surplus of 1.2% of GDP due to rising oil prices .
"In 2018, the total fiscal balance is expected to reach a surplus of 1.2 percent of GDP due to higher oil prices, " the World Bank said in a report on economic developments in Iraq .
"The Iraqi government will have available space in public finance to finance the reconstruction, provided the continuation of the process of controlling the conditions of public finances," noting that the gross output will rise by 1.9% due to improved security situation and high oil prices .
"Non-oil growth saw a rise of 5.2 percent in 2018, boosted by growth in agriculture, industry and services," the report said, noting inflation in 2017 fell by 0.1 percent, but rising demand pushed inflation up 1.7 percent in July this year. .
"The growth rate and the budget surplus will reduce the ratio of public debt to GDP from 67.3 percent in 2016 to about 55 percent," he said, pointing to "the acceleration of GDP to 6.2 percent in 2019 supported by high oil prices ."
The World Bank warned in its report from the dependence of the Iraqi economy on oil revenues, calling for the need to diversify sources of revenue.
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