Date of release: 2017/8/10
take IMF that Iraq is currently facing a double challenge of economic compensation for material losses resulting from the war against Daesh, as well as the decline in production and oil prices.
The IMF said in a report on Wednesday that in 2016 real GDP of Iraq rose by 11 percent, as a result of a rise of 25 percent in oil production, “which was not significantly affected by the conflict with [Da’sh] at the time.”
The report added that it expects that this year’s economic activity will not see any rise due to a 1.5% decline in oil production because of Iraq’s commitment to the agreement of the oil exporting countries from [OPEC] and beyond to reduce the level of production and also because of the very modest recovery of non-oil sectors
, The decline in oil prices led to a decline in Iraq’s foreign exchange reserves from 54 billion US dollars at the end of 2015 to 45 billion at the end of 2016, saying that “the financial pressure continued as the government deficit increased to 14 percent of GDP in 2016, after 12 percent In 2015 “.
However, the outlook for medium-term growth appears to be positive due to the expected improvement in the security situation and readiness to implement several infrastructure projects, although the risks remain high due to continuing security and political tensions, the IMF said.
Kuwait has been in contact for a long time with the countries of the world, the World Bank and Iraq itself to prepare to host a conference donors for the reconstruction of liberated areas of Iraq, which may be held in the first quarter of next year.