economy Since 2017-08-10 at 12:51 (Baghdad time)
Baghdad Mawazine News
The International Monetary Fund (IMF) predicted that Iraq's economic activity this year will remain silent as oil production shrank by 1.5 percent due to OPEC's agreement to cut oil production and a modest recovery of the non-oil sector.
"The prospects for medium-term growth of the Iraqi economy are positive, and growth will return to the expected moderate increase in oil production and the recovery in non-oil growth supported by the expected improvement in security and the implementation of structural reform," the IMF said in a report.
"The risks are still very high, but they are mainly due to volatility of security, political tensions and weak implementation of policies. Iraq faces a double shock resulting from the conflict with a push and drop in oil prices."
Real GDP rose by 11% by the end of 2016, due to a 25% increase in oil production, which was not significantly affected by the conflict with the DUP.
"The decline in oil prices led to the decline of Iraq's international reserves from 54 billion dollars at the end of 2015 to 45 billion dollars by the end of 2016 and continue financial pressure, as the government deficit increased from 12% of GDP in 2015 to 14 In 2016 despite the continued adjustment of public finances, due to weak oil prices and high humanitarian and security spending. "
The IMF pointed out that "the authorities have maintained the appropriate exchange rate, and simplified documentation requirements implemented by the Central Bank of Iraq to decrease the spread of the parallel market to 6% in June 2017.
"Supporting Iraq through a three-year reserve arrangement of 3.831 million SDRs ($ 5.380 billion), equivalent to 230 percent of the quota," he said.
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