A European report monitors an economic breakthrough for Iraq .. But "the risks are great"

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[size=52]A European report monitors an economic breakthrough for Iraq .. But "the risks are great"[/size]

[size=45]The European "Modern Diplomatic" website monitored indicators of economic détente in Iraq and its exit from recession, but warned that the country is still, despite this, exposed to "great risks."[/size]
[size=45]And the European website clarified in a report, published in English, that the macroeconomic outlook for Iraq faces a large level of risks due to the strong dependence on oil and the stagnation with regard to the budget, in addition to the delay in forming a new government, noting that reliance on oil can harm reforms. , thus exacerbating the challenges to the economic structure.[/size]
[size=45]Despite this, the report stressed that Iraq is gradually emerging from the deep recession caused by the Corona epidemic, and caused the collapse of oil prices in the year 2020, noting that the economy is expected to grow by an average of 5.4% annually between 2022 and 2024.[/size]
[size=45]At the same time, the European website quoted a quarterly report of the World Bank on Iraq under the title “Harnessing the unexpected revenues of oil for sustainable development,” saying that after the period of contraction of the Iraqi economy by more than 11% during the year 2020, the growth during the year 2021, Record 2.8%.[/size]
[size=45]He pointed out that this was achieved with the easing of the closure restrictions related to the Corona epidemic, in addition to the strong increase in non-oil production, especially in the services sector.[/size]
[size=45]The report indicated that there was an increase in the oil domestic product in the second half of 2021, with the start of the gradual cancellation of the “OPEC +” production cuts, which pushed towards increasing oil revenues and achieving a surplus in the public financial balance during the year 2021.[/size]
[size=45]The report recalled the statement of the World Bank's Regional Director, Saroj Kumar Gah, in which he said that "Iraq has a unique opportunity to implement urgent and broad structural reforms by taking advantage of the financial space resulting from its unexpected oil gains."[/size]
[size=45]The international official considered, "Redirecting government expenditures towards programs that contribute to improving growth, is a very important issue for economic diversification, creating job opportunities and addressing the human capital crisis in the country."[/size]
[size=45]The report also referred to the “current challenges facing food security in Iraq,” which it noted, “have exacerbated in light of the current rise in the prices of major commodities globally, at a time when local food production does not meet the levels of demand in light of the accelerating population growth.”[/size]
[size=45]The report continued, "Severe drought and other factors of climate change have exacerbated the situation," stressing the importance of "achieving food security through coordinated efforts aimed at improving local food production and implementing more efficient management of water resources."[/size]
[size=45]The report concluded by warning that “the financial, social and economic fragility in Iraq emphasizes the need to accelerate the necessary structural and financial reforms in order to address the obstacles facing the development of the private sector and increase investments in developing efficiency using water and agricultural systems, and then moving towards more sustainable sources of energy.” .[/size]
[size=45]The report also warned of “the additional delay in forming the government and in approving the budget for the year 2022, if this would cause a restriction in the use of the unexpected revenues of Iraq from its oil resources, and thus lead to the reduction of economic growth and the delay of new investments.”[/size]
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