IMF expects the growth of the economies of Arab countries



IMF expects the growth of the economies of Arab countries
4/15/2017 (00:01 pm)   –   Number of readings: 68   –   Issue (3902)

 Baghdad / term

Expected economic report data, the recovery and the pace of economic activity in the Arab countries and the growth rate of 2.7% next year (2018, and including Iraq).
According to the report issued by the Arab Monetary Fund, the Arab oil exporting countries will see higher growth to 2.3% as a result of the return of oil production volumes prior to their tracks and continue to rise in global prices.
Forecast also attributed to the positive impact of the expected decline in the deflationary impact of the policies of fiscal discipline on demand levels, as well as expectations of a relative improvement in the internal situation of some of those countries, including Iraq.
Report, April version of “Prospects for the Arab economy , ” the title, reported that the expected improvement in the economic performance next year, includes the Gulf states and other Arab oil – exporting countries to 2.2% and 3% respectively.
Witnessing the Arab oil – producing economies, a decline in revenues as a result of the decline in crude prices in the world markets, while experiencing consumer Arab countries have security tensions as a result of wars or revolutions and their consequences for neighboring countries.
According to the report, economic activity will continue to improve in the oil – importing countries growth rate to reach 4.1% by the increase in external demand due to the improved global economic activity, which will support exports and investment levels.
The fund predicted slowing down activity of Arab economies during 2017, and recorded growth of around 2.3%, as a result , the growth in oil exporting countries to a rate of 1.8% due to the reduction of oil production amounts under OPEC ‘s agreement.
And inflation expectations during 2017 and 2018, the report pointed out that the rate will be affected by avariety of local factors, including the continuation of actions aimed at rationalizing the support, and theapplication of VAT, in addition to the prospect of other new taxes , such as selective tax.
The report continued, said that in light of the above factors, it is expected that the inflation rate in the Arab countries during the current year , 9.8% and about 9.6% in 2018.
advised the International Monetary Fund for Iraq to reduce spending and activate other sectors out of the current financial crisis, as recently confirmed that The Iraqi government has implemented fiscal adjustment program provided for by the standby credit agreement, and would be able to repay its debts.

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