Iraq’s Economic Growth Shows a Sluggish Trend, Reports International Monetary Fund
A group of experts from the International Monetary Fund, following a visit to the Jordanian capital Amman, released an analytical report on the economic situation in Iraq last week.
The Fund published an article on its website stating: “An International Monetary Fund team led by Tukhir Mirzoev visited Amman, Jordan between May 24-31 to discuss recent developments and economic prospects with the Iraqi authorities, as well as discussion of policy plans for the coming period.
He added: “The momentum of the Iraqi economy has slowed in recent months. After oil production rebounded last year and recovered to pre-coronavirus levels, output is expected to fall by 5 percent this year. 2023 in the light of the OPEC+ decision to cut production.” Oil production and shutdown of the Kirkuk-Ceyhan oil pipeline.
He pointed out that “fluctuations in the foreign exchange market following the implementation by the Central Bank of Iraq of more stringent controls to combat money laundering and terrorist financing in the sale of foreign exchange had a negative impact on non-oil sectors based on imports.”
And he continued: “Non-oil real GDP is estimated to have contracted by 9 percent (on a yearly basis) during the last quarter of 2022, offsetting the growth achieved during the first three quarters of the year. with signs of stabilization in the foreign exchange market In light of the measures taken by the Central Bank of Iraq, real non-oil GDP growth is expected to resume, reaching 3.7 percent in 2023. After the inflation rate rose to 7 percent in January, inflation began to decline in a manner that reflects the decline in international commodity prices and the appreciation of the Iraqi dinar by 10 percent, with the inflation rate expected to average 5 .6 percent during 2023.