International Monetary Fund: the growth rate in Iraq in 2015 will amount to 1.5%
The International Monetary Fund, on Wednesday, that the rate of economic growth in Iraq in 2015 by 1.5% due to the increase in oil production of the existing areas that fall under Iraqi government control, with the expectation that rising current account deficit of the balance of payments to 7% of GDP local for the same year, he pointed to the decline in foreign exchange reserves.
The IMF said in a statement released today, received a (long-Presse), a copy of it, that "the mission of International Monetary Fund experts, chaired by Christian nut visited in Amman during the period from (1 to November 10, 2015) to discuss the program watched by IMF experts with the Iraqi authorities of Finance Minister Hoshyar Zebari and Governor of the Central Bank and the Agency on the Keywords others and by officials from the Ministry of Finance and Planning and the oil and the Central Bank of Iraq to discuss recent economic developments of the country and the problem faced by Iraq with al (Daash) and falling oil prices. "
The fund said in a statement, that "Iraq continues to face a number of challenges, notably the continuing armed conflict with (Daash), which continues to strain the country's resources and lead to the release of new waves of displaced people inside whose numbers reached more than four million displaced people in the month of June 2015 "noting that" the second challenge faced by President Iraq is the fall in oil prices, which is causing a large external shock to the Iraqi balance of payments and budget revenues that depend on the proceeds of Iraqi oil. "
Fund predicted that the "gross domestic product to grow by 1.5% in 2015 due to the increase in oil production in existing areas under Iraqi government control in areas of the Kurdistan Regional Government."
The International Monetary Fund, in its statement, that "the current account deficit of the balance of payments is expected to rise to reach 7% of gross domestic product in 2015," pointing out that "foreign exchange reserves, which amounted to 59 billion US dollars in October end the first in 2015, and expected to fall, but the equivalent of 9 months of imports of goods and services at the end of 2015. "
The fund between also, that "the Iraqi authorities are committed to face financial pressures as a result of the double shock to oil prices and attacks (Daash)," asserting that "the Iraqi authorities will implement the correct fiscal consolidation process to contain public spending in line with revenues and funds available and aims to cut spending non-oil The initial rate of 4% of the total non-oil GDP during the period between 2014 and 2016 ".
The International Monetary Fund predicted on Wednesday the (19 August 2015), to witness the Iraqi economy "improved modestly" during the current 2015 by 0.5 percent due to the increase of oil production, with incidence more contraction in activity the non-oil sector, and with the exception of that outlook the rate of growth in the medium term, is still positive, although it is less than the required rates before the crisis, he stressed that the growth will be determined by the desired increase oil production and recovery rates of growth in other sectors as well as the expected improvements to the security situation and the implementation of structural reforms.
It is noteworthy that Iraq complain of weak financial revenues due to declining oil prices and increased expenses, which the military side came on her head, which made the government resort to austerity as one of the solutions adopted to meet the country's economic situation started.
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