The IMF expects Iraq's economy to growth of more than 6% this year

The IMF expects Iraq's economy to growth of more than 6% this year




Baghdad/agencies

The IMF predicted more economic activity in Iraq in 2014 thanks to GDP growth to more than 6 percent with higher output to 3.2 million barrels per day and exports 2.5 million barrels per day.

Iraq has the world's fourth largest oil reserves in the world, and aims to increase oil production to 8 million barrels a day by 2017. The Fund noted in a recent report that in 2013 the oil revenues grew less than expected, and increased spending pressures due largely to the difficult security situation, which affected the performance of public finance in General. As a result, the budget deficit rose to 6 "of GDP in 2013.

Visiting IMF mission headed by Carlo sdralvich, Jordan, Oman, during the period 19-24 this month and met with an official delegation from Iraq, headed by the Minister of finance, purely NET. The mission also met with the Acting Governor of the Central Bank, Abdul Basit Turki Saeed, and officials from the ministries of finance and planning and oil, the Central Bank and the Court of Auditors.

The statement said the IMF mission that Iraq maintained macroeconomic stability in 2013 despite lower oil production and exports less than expected, growth remained strong at 4.2 "thanks to the growth of non-oil activity 7" driven by construction and retail trade. As inflation fell slightly to 3.1 in 2013 "3.6" in 2012, reflecting the stability of prices of material food and fuel prices worldwide.

As the Iraqi dinar exchange rate stable, and growing foreign reserves at the Central Bank in the amount of $ 7 billion to $ 78 billion at the end of 2013, enough to cover Iraq's imports of goods and services. For 10 months.

The statement said Iraq budget for 2014 includes spending increases that reflect new commitments to social security and assistance pensions, transfers between provinces. And Iraq budget for the current fiscal year is about $ 150 billion, up $ 30 billion and 20 "about budget 2013. It has been described as the highest budget in the history of Iraq, based on 93 "on oil revenues, has built the basis for the calculation of the 90 dollars per barrel and production of 3.4 million barrels.

Download the draft budget deficit of 35 trillion Iraqi dinars, or the equivalent of approximately 29 billion de r. But Finance Minister Safaa net debt has prepared a draft annex to the budget, including a reduction of the deficit by $ 5.3 billion to $ 23.7 billion.

And the IMF Mission's statement called on the Iraqi authorities to reduce planned spending commitments in the budget, while maintaining social expenditure, with a view to continued macroeconomic stability. Earlier last week, did not arrive at the Tripartite Commission formed by the Iraqi Parliament to resolve the federal budget between Baghdad and Erbil. The Committee includes three leaders of State law of Prime Minister Nouri al-Maliki, and Iraqi Kurdistan Alliance.

And it boils down to is the dispute between Baghdad and the Kurdish region in northern Iraq, the Central Government authorities claim Kurdistan to deposit the proceeds of oil exports from the region in the Development Fund for Iraq, which are distributed to the regions and governorates.

The Central Government and the territorial Government to export 400,000 barrels per day, and the expenses of contracting with foreign oil companies, in Exchange for keeping a "territory of public budget at 17 percent. Baghdad wants to uphold the right to export oil from northern Iraq through national oil company SOMO but territory refuses and says that the company is still working with the laws conflict with the Constitution.

The President threatened the northern Iraq, Massoud Barzani, last week the possibility of deciding all of a sudden if Baghdad refused to give the rights of the territory's budget. Production ranges from northern Iraq between 350 to 400 thousand barrels per day.

The IMF team also consulted with representatives of the private sector and the diplomatic community in Oman, the mission reviewed recent developments on macroeconomic, financial and monetary issues in the current Iraq. He urged the International Monetary Fund mission statement the Iraqi authorities to make efforts to achieve better management of oil revenues through the containment of current spending and strengthen the financial conditions and longer-term foreign. The 95 ' budget comes from oil revenues.

And the IMF mission said in a statement on the importance of strengthening public financial management, including budgeting and classification processes, and reporting, introduce an integrated information system to assist in the preparation and implementation of sustainable fiscal policies. The statement noted "progress in financial sector reform agenda in Iraq," he said, adding that the Central Bank is moving ahead in improving its operations and reform of the financial sector through the development of new laws to the World Bank, commercial banks, anti-money laundering and combating the financing of terrorism ".

The statement called on the Government and Central Bank to accelerate the restructuring of large State-owned banks and create a climate for the private banking sector. He also called for renewed efforts by the Central Bank to liberalize the foreign exchange market, as well as reducing the margin between the Bank's auction prices and the parallel market rates, exchange rate, supported by abundant international reserves "in Iraq, provides a key to the economy and Iraq.

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