There is no doubt that Iraq will face difficult economic challenges in 2018, no less than the challenges it faced during the past two years, although some of the reasons for the financial crisis that hit the country due to the decline in oil prices have faded even relatively after the recovery of global crude oil prices during the two months The last two, driven by the winter and declining world oil reserves,
The rise in oil prices on the global market will certainly contribute to a huge deficit in the 2018 budget and a reserve rate of up to 12 billion dollars.
However, the economic challenges remain in 2018 as long as the Iraqi economy as a whole is still largely dependent on consumption by 90 percent of oil imports, while other economic sectors, including agriculture, industry and services, are almost paralyzed, which makes it impossible to create jobs. New and additional financial resources that provide the budget and relieve heavy burdens.
The Iraqi economy and I think it will remain during the year 2018 unilaterally, while the remaining agriculture and industry development wing is disabled because of the need for large capital and huge domestic and foreign investments and clear plans, may not be available in the near future, in the absence of the real will and the economic outlook and management able to lift These two important sectors of their long-term dormancy.
What is required then to make 2018 a year of economic breakthrough and real development? The answer is to take into account the diversification of resources and the creation of appropriate environments and floors for foreign investment.
We must talk about the challenges of 2018, stressing the role of public and private banks, without which there is no development, economic and financial reform is taking place. If it is best invested to play a prominent role in development despite the losses caused by the decline of the majority of shares to less than one dinar per share, the price of purchase at the establishment.
As we speak of the challenges of 2018, we must overlook the internal and external religion.
As it represents one of the biggest challenges faced by the government and still face, because of the size of the high debt and the benefits of these debts, which are becoming more burdensome budget for the country, so the International Monetary Fund felt the need to strengthen the budget in 2018 three axes, "the reduction of debt accumulation, Necessary, and maximize non-oil revenues "to address the dominance of bilateral oil resources and internal and external debt on the total operational and development expenses.
Therefore, borrowing in the future should be governed by the ability of Iraq to pay, interest rate and repayment period. The total amount of loans should go to development projects, not to the operational doors and unnecessary government expenditures, and the volume of borrowing should not exceed 60% The gross domestic product,
The fight against corruption and the reconstruction of what has been destroyed by terrorism in the liberated cities remains the most difficult issue and the biggest challenge to the government in 2018. The government has no choice but to deal with them and prepare for the desired sustainable development.
President of the Association of Iraqi Private Banks
Quoting the government daily Al-Sabah
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