The International Monetary Fund (IMF) expects a positive growth of the Iraqi economy over the medium term thanks to improvements in the security situation and the implementation of infrastructure projects.
"Iraq is currently facing a two-pronged economic challenge of compensating the material losses caused by the war against an oppressive organization as well as declining oil production and prices," the IMF said in a report on Thursday.
"Iraq's real gross domestic product (GDP) rose by 11 percent in 2016, as a result of a 25 percent rise in oil production, which was not significantly affected by the conflict at that time," he said.
The report added that it expects that this year's economic activity will not witness any increase due to a decrease of 1.5% in oil production due to Iraq's commitment to the agreement of the OPEC and outside OPEC to reduce the level of production due to the very modest recovery of the non-oil sectors.
He pointed out that "the decline in oil prices led to a decline in Iraq's reserves of foreign currency from 54 billion US dollars at the end of 2015 to 45 billion at the end of 2016, saying," The financial pressure continues as the government deficit increased to 14% of output Gross domestic product in 2016 after it was 12% in 2015 ".
"The outlook for medium-term growth is positive with the improvement in the security situation and the willingness to implement several infrastructure projects, although the risks remain very high due to ongoing security and political tensions," the IMF said.
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