The International Monetary Fund expects growth in Iraq to recover in 2018 and 2019

The International Monetary Fund expects growth in Iraq to recover in 2018 and 2019



Tuesday 13 November 2018 11:00

Alsumaria News / Baghdad
, predicted the International Monetary Fund on Tuesday, the recovery of growth in Iraq in 2018 and 2019, indicating that the current state of the temporary rise in oil prices provide an opportunity for producing countries to rebuild preventive reserves.

"The growth in oil countries in the region outside the Gulf, namely Iran, Iraq, Algeria and Libya , is expected to reach 0.3 percent in 2018, after reaching 3 percent a year earlier, before rising to 0.9 percent in 2019, "noting that this" reflects significantly the re-imposition of US sanctions on Iran, which will likely reduce the production of Iran and exports in the next two years. "

The IMF predicted "the recovery of growth in Iraq in 2018 and 2019, which is mainly due to the continuation of reconstruction efforts."

The IMF noted that "all these oil countries face similar financial challenges in the medium term. Given the high reliance on oil revenues, the average price achieved for the fiscal equivalent of 2020-2023 is expected to exceed the current oil price levels except in Iraq, Kuwait, Qatar, Saudi Arabia and the UAE United Arab Emirates, fiscal balances are still vulnerable to oil price movements. "

"The current temporary rise in oil prices provides an opportunity for countries to rebuild their reserves and potential threats to global prospects, including increased trade tensions, may put additional pressure on oil prices," the IMF said. Countries to strengthen their fiscal frameworks to create fiscal space in cases where they will need support through fiscal policy. "

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