A report by the US network CNBC concluded that Fitch’s confidence in the credit rating of Iraq’s economy last month would have a positive impact on investment in Iraq.
Fitch has awarded Iraq a B + rating with a positive outlook for its future, which it believes will be stable, although it is fighting a war against Islamic state organization, the network wrote in its report.
Fitch has put Iraq at the B + level because of the size of political risks and instability due to the conflicts it is going through.
But pointed out that the positive outlook for the situation of Iraq will have a positive return among investors who fear to pump their money in it.
Financial expert Stephen Simonis said Iraq could raise growth rates thanks to its oil reserves and other dependable sectors.
The report added that granting Fitch Iraq this confidence gives the green light to invest in it, pointing out that the Iraqi market for securities has been operating with all its strength since last year, and there are expectations to redistribute funds allocated for the current military spending in the budget and give a push to spend on infrastructure and economic recovery.
In its March report, Fitch indicated that Iraq’s fiscal situation had improved and projected its fiscal deficit to shrink to 5.1 percent of GDP this year due to rising oil revenues and an increase in government spending by 12.1 percent after three Years of retreat.
Source: Reuters / CNBC