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An expert predicts Iraq's economic future in 2025
Reports Saturday, December 21, 2024 at 22:41 pm (70 views)
Sky Press/Baghdad
On Saturday, international economist Nawar Al-Saadi revealed the financial and economic future expectations for Iraq at the beginning of the new year 2025. Al-Saadi said,
"Iraq's economic and financial future expectations at the beginning of the new year carry a mixture of optimism and caution, as
they depend largely on a group of economic, political, and regional factors that directly affect the country's financial and economic stability." He added,
"International estimates indicate an improvement in Iraq's economic growth rates, according to reports from the International Monetary Fund, where
it is expected that the Iraqi economy will witness growth of 1.4% during the next year, with an expected increase of up to 5.3% in 2025.
This growth reflects the recovery of the economy."
After the challenges it faced in recent years, especially after the economic contraction that reached 2.2% in 2022, economic growth will be mainly driven by stabilizing oil prices and increasing investments in non-oil sectors.” Al-Saadi pointed out,
“There are fears of a deterioration in the financial situation due to the expected deficit in the state’s general budget, as the deficit is expected to expand to 7.6% of the gross domestic product during the next year, compared to 1.3% in the current year.
This deficit is due to fluctuations in oil prices, which are the main source of government revenues.
The economic situation is further complicated by the heavy dependence on oil, as it constitutes about 90% of Iraq’s revenues.
Any decrease in its global prices may lead to severe financial pressure on the government.” He pointed out that
“other challenges relate to inflation rates, which are expected to rise slightly to reach 3.5% in 2025.
This rise reflects the effects of financial pressures and internal economic challenges, including the rise in prices of goods and services as a result of increased production and import costs.
Oil production:
Iraq is expected to continue to maintain a high level of production, with plans to enhance its production capacity to reach about 4 million barrels per day by the first quarter of 2025. However, the
success of these efforts will remain linked to stability. political and relations with OPEC, in addition to achieving long-term investments in energy infrastructure.” Al-Saadi continued:
“At the banking sector level, the government seeks to implement structural reforms to
improve the efficiency of the banking system and
increase transparency, and
these reforms come within a larger vision to
develop the Iraqi economy and
diversify sources of income away from excessive dependence on oil.”
The specialist in international economics concluded his speech by referring to all the aforementioned data, by saying that
“Iraq may be facing hot economic and financial events with the beginning of the new year, and the
main challenge lies in the government’s ability to manage these challenges effectively through balanced financial and economic policies aimed at Promoting economic stability and diversifying the economy to achieve sustainable growth.”
[You must be registered and logged in to see this link.]
Reports Saturday, December 21, 2024 at 22:41 pm (70 views)
Sky Press/Baghdad
On Saturday, international economist Nawar Al-Saadi revealed the financial and economic future expectations for Iraq at the beginning of the new year 2025. Al-Saadi said,
"Iraq's economic and financial future expectations at the beginning of the new year carry a mixture of optimism and caution, as
they depend largely on a group of economic, political, and regional factors that directly affect the country's financial and economic stability." He added,
"International estimates indicate an improvement in Iraq's economic growth rates, according to reports from the International Monetary Fund, where
it is expected that the Iraqi economy will witness growth of 1.4% during the next year, with an expected increase of up to 5.3% in 2025.
This growth reflects the recovery of the economy."
After the challenges it faced in recent years, especially after the economic contraction that reached 2.2% in 2022, economic growth will be mainly driven by stabilizing oil prices and increasing investments in non-oil sectors.” Al-Saadi pointed out,
“There are fears of a deterioration in the financial situation due to the expected deficit in the state’s general budget, as the deficit is expected to expand to 7.6% of the gross domestic product during the next year, compared to 1.3% in the current year.
This deficit is due to fluctuations in oil prices, which are the main source of government revenues.
The economic situation is further complicated by the heavy dependence on oil, as it constitutes about 90% of Iraq’s revenues.
Any decrease in its global prices may lead to severe financial pressure on the government.” He pointed out that
“other challenges relate to inflation rates, which are expected to rise slightly to reach 3.5% in 2025.
This rise reflects the effects of financial pressures and internal economic challenges, including the rise in prices of goods and services as a result of increased production and import costs.
Oil production:
Iraq is expected to continue to maintain a high level of production, with plans to enhance its production capacity to reach about 4 million barrels per day by the first quarter of 2025. However, the
success of these efforts will remain linked to stability. political and relations with OPEC, in addition to achieving long-term investments in energy infrastructure.” Al-Saadi continued:
“At the banking sector level, the government seeks to implement structural reforms to
improve the efficiency of the banking system and
increase transparency, and
these reforms come within a larger vision to
develop the Iraqi economy and
diversify sources of income away from excessive dependence on oil.”
The specialist in international economics concluded his speech by referring to all the aforementioned data, by saying that
“Iraq may be facing hot economic and financial events with the beginning of the new year, and the
main challenge lies in the government’s ability to manage these challenges effectively through balanced financial and economic policies aimed at Promoting economic stability and diversifying the economy to achieve sustainable growth.”
[You must be registered and logged in to see this link.]
