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International Monetary Fund (IMF) confirms that the Iraqi economy still has a “weakness”

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International Monetary Fund (IMF) confirms that the Iraqi economy still has a “weakness”

Unread postby Stillw8n » Wed May 22, 2013 9:43 am

International Monetary Fund (IMF) confirms that the Iraqi economy still has a “weakness”


Urged the International Monetary Fund (IMF), on Wednesday, Iraq to “take remedial action in fiscal policy” to improve the levels of pension for citizens, and between the Iraqi economy “still suffers from weaknesses” represented “the small size of non-oil sector and high unemployment,” noting The Iraqi Central Bank reserves reached 70 billion), “the end of 2012.

A statement issued by the International Monetary Fund (IMF) in the quarterly report on developments in the economic and political situation in Iraq, briefed the (long-Presse), a copy of it, that “the executive body of the Fund, which prepared the report in accordance with the Article IV of the Fund with Iraqi officials, confirms that the Iraqi economy is still suffering from weakness, “and that” weaknesses, represented by the small size of the non-oil sector and high unemployment, and control of the public sector and the weakness of the business environment. “

The statement added that “the Fund recommended that the Iraqi side should be careful to manage the financial budget to maintain macroeconomic stability and to meet social needs and large investment in Iraq,” and pointed out that “the Fund called on to continue to make further financial reserves preventive to face the volatility of the oil market and ensure the continuity of the financial situation public in the medium term. “

He urged the International Monetary Fund in its statement “Iraq to work on strengthening the institutions of public finances and improve financial management to ensure efficiency and transparency in the use of oil revenues,” and that it “recommends the importance of achieving financial sector is stable through the development of the private sector and diversify the economy.”

He praised the statement as “recent developments strengthen the efforts of the Central Bank to revise its monetary policy and strengthen banking supervision in each of the Rafidain and Rasheed and prepare for re-Hiklthma with ensuring that the private banking sector and the public turn to support employment growth and to achieve fair competition between them.”

The statement added that “the Fund is expected to continue high growth linked to the oil sector for the next few years,” he said, adding that “support the growth in non-oil private sector will need to be long-term government strategy focuses on improving the business environment and open up opportunities for the private sector,”

He expressed Fund predicted that “continue oil production بالازدياد gradually at (400) to (500) thousand barrels per day, bringing the rate of production total in Iraq to 5.7 million barrels per day by the year 2018,” he predicted that “maintains a growth rate higher than the (8%) and the survival rate of inflation between 5% to 6% over the medium term. “

The Fund in its report that “although the security environment and political circumstances experienced by Iraq, he managed to maintain macroeconomic stability over the past two years,” and that “the economic growth rate of approximate arrived (8%) during the year 2012,” and pointed out The “is expected to increase this year to reach (9%) with increasing oil Antiaj of 3 million barrels per day in 2012 to 3.3 million barrels per day in the year 2013.”

The statement continued, “it was to contain inflation in the year 2012 at the level of (6%),” expected to “record a slight decline in the next year,” and explained that “because of the strength of oil revenues has reached reserves the Iraqi Central Bank to (70) billion dollars at the end of year 2012, “noting that” balances the Development Fund for Iraq rose to 18 billion dollars. “

The International Monetary Fund, announced in the (March 23, 2013), that the funds preventive in the Development Fund for Iraq rose in 2012 to $ 18 billion, and pointed out that this increase came from the “oil revenues unexpected,” in called for the Iraqi government to end control of the state-owned banks on the banking sector, he stressed the need for Iraq to strengthen public financial institutions to ensure efficiency and transparency in the use of oil revenues.

The U.S. development agency predicted in (December 3, 2012) that leads the Iraqi economy, the Arab countries within five years, stressing that Iraq possessed all the qualifications to be an economically strong state.

Iraq is trying for years to attract foreign capital to develop its economy in the fields of industry especially oil, including housing and oil and gas extraction, for the need of funds for infrastructure development and reconstruction, but Mariqben contend that the lack of interest of the state to the private sector and the absence of investment laws which guarantees for investors and the absence of Other laws are still obstacles to the evolution of the economy in the form required.

Iraq relies which has the fourth largest oil reserves in the world at 95 percent of its annual budget on its oil exports and currently produces about two million and 900 thousand barrels per day, while the issue up to two million and 200 thousand barrels per day.
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