The Institute of International Finance projected Iraq's real GDP growth to accelerate from 0.2% in 2017 to 4% in 2018 and 4.4% in 2019. It expected hydrocarbon output to grow by 3% in 2018 and 4% in 2019 following a contraction of 2.1% in 2017. It forecast growth in the non-hydrocarbon sector at 6% this year and 5% in 2019, relative to 5% last year, mainly due to the government's expansionary fiscal stance and the recovery from a low output base following three years of contraction, and as the new reconstruction phase begins following the defeat of Islamic State militants. It said that the Iraqi government still has to implement many reforms, such as improving access to credit and developing the banking sector in order to develop the non-oil sector. It added that the government plans to gradually raise electricity tariffs above cost recovery to attract investment to the sector. It indicated that the main risks to the outlook include the intensification of sectarian tensions and lower-than-anticipated oil prices that could generate substantial revenue losses, weaken the fiscal and trade balances, and increase pressure on foreign currency reserves and on the exchange rate peg.
Source: Institute of International Finance
To optimize this website's functionality, we may utilize cookies, which are small data files stored on your device. This common practice helps improve your browsing experience.
Choose which cookies you wish to enable. You can change these settings at any time. However, this can result in some functions no longer being available. For more information on deleting cookies, please consult your browser help function. LEARN MORE ABOUT THE COOKIES WE USE.
Use the slider to enable or disable various types of cookies:
Save And Close