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Expert: The IMF report was “positive” but included economic warnings
Economical 01/03/2024
Baghdad: Haider Falih Al-Rubaie
The economic expert, Dr. Nabil Al-Marsoumi, confirmed that
the indicators included in the report of the International Monetary Fund experts on Iraq, especially related to the decline in inflation rates, the tightening of the Central Bank’s procedures, and the increase in growth indicators, are all positive,
but those indicators were accompanied by “some” warnings about the significant expansion in... Public finances, the possibility of a budget deficit, as well as fears related to the decline in oil production. Al-Marsoumi pointed out that
“the report pointed to some risks facing the Iraqi economy, including the significant expansion of public finances within the framework of the three-year budget law in force,” indicating that the
IMF believes that this matter could impose large and important risks on the sustainability of the conditions of public finances and the external sector. In the medium term. Al-Marsoumi pointed out that
the other warning expressed by the Fund related to the decline in oil production after the closure of the oil pipeline linking Iraq and Turkey, and the reduction in production at the request of the OPEC+ group, stressing that
the report believes that these measures will lead to a reduction in the growth of the gross domestic product in the country. The years 2023 and 2024. The economist also explained that
among the other risks mentioned by the International Monetary Fund in its report is its expectation that the public finance balance will shift from a large surplus achieved in 2022 to a budget deficit, in addition to the Fund’s experts’ expectation that the size of the fiscal deficit will expand to a greater extent in the current year. 2024, reflecting the full annual impact of budget actions. The economist explained that the
IMF called for the necessity of
“mobilizing more non-oil revenues,
containing the wage bill of government employees, and
reforming the government retirement system,”
stressing the importance of supporting these measures by moving to work on a more targeted social safety net that works to Providing better protection for vulnerable groups.
The report also recommended the need to create equal opportunities for the private sector, through reforms in banking and the electricity sector, reducing distortions in the labor market, and continuing efforts to strengthen governance and limit the spread of corruption.
An International Monetary Fund report, issued at the end of last month, reviewed the most prominent positives achieved by Iraq at various economic and development levels, suggesting “non-oil GDP growth of 5 percent in light of the significant expansion in public finances within the framework of the effective three-year budget law.”
Pointing out that “to continue implementing the budget, strong non-oil growth should continue in the current year 2024.”
However, the Fund expressed its fear of a decline in oil production after the closure of the oil pipeline linking Iraq and Turkey, and reducing production based on the request of the OPEC + group, likely to lead to This will reduce the growth of the gross domestic product in the years 2023 and 2024.”
According to a team of International Monetary Fund experts, led by Jean-Guillaume Poulain,
“the inflation rate has declined from the peak it reached by 7 percent in January of last year, and
inflation is expected to stabilize in the coming months, thanks to the
Central Bank of Iraq’s policy of Tighter monetary policy, the
impact of the rise in the Iraqi dinar exchange rate,
lower global food prices, and the
return of trade finance operations to normal with
improved compliance with the anti-money laundering and counter-terrorism financing framework.”
For his part, the economic affairs specialist, Ali Karim Al-Diffai, pointed out that the
economic achievements achieved by the government during the past year are very important and positive, stressing that
these achievements will be reflected positively during the current year 2024 through
increased development rates and a
decline in inflation, poverty and unemployment rates,
pointing out at the same time In the same way,
government support for the private sector will enhance the economic recovery, and
will lead to the employment of many workers and
move the wheel of industry.
Al-Diffai also praised the decisions of the monetary authority that contributed to undermining the dollar and reducing its frightening rises, indicating that
this policy led to the stability of the prices of goods and materials in the local markets, and
thus the recovery of the purchasing power of the individual and the increase in the volume of local production,
calling on government agencies to issue more decisions that This will achieve positive results at the economic level in the country, explaining that
the World Bank report mentioned many positive points that Iraq has achieved as a result of those decisions taken by the government, which are in the interest of supporting various productive sectors, agricultural, industrial, and even tourism.
https://alsabaah.iq/89799-.html
Economical 01/03/2024
Baghdad: Haider Falih Al-Rubaie
The economic expert, Dr. Nabil Al-Marsoumi, confirmed that
the indicators included in the report of the International Monetary Fund experts on Iraq, especially related to the decline in inflation rates, the tightening of the Central Bank’s procedures, and the increase in growth indicators, are all positive,
but those indicators were accompanied by “some” warnings about the significant expansion in... Public finances, the possibility of a budget deficit, as well as fears related to the decline in oil production. Al-Marsoumi pointed out that
“the report pointed to some risks facing the Iraqi economy, including the significant expansion of public finances within the framework of the three-year budget law in force,” indicating that the
IMF believes that this matter could impose large and important risks on the sustainability of the conditions of public finances and the external sector. In the medium term. Al-Marsoumi pointed out that
the other warning expressed by the Fund related to the decline in oil production after the closure of the oil pipeline linking Iraq and Turkey, and the reduction in production at the request of the OPEC+ group, stressing that
the report believes that these measures will lead to a reduction in the growth of the gross domestic product in the country. The years 2023 and 2024. The economist also explained that
among the other risks mentioned by the International Monetary Fund in its report is its expectation that the public finance balance will shift from a large surplus achieved in 2022 to a budget deficit, in addition to the Fund’s experts’ expectation that the size of the fiscal deficit will expand to a greater extent in the current year. 2024, reflecting the full annual impact of budget actions. The economist explained that the
IMF called for the necessity of
“mobilizing more non-oil revenues,
containing the wage bill of government employees, and
reforming the government retirement system,”
stressing the importance of supporting these measures by moving to work on a more targeted social safety net that works to Providing better protection for vulnerable groups.
The report also recommended the need to create equal opportunities for the private sector, through reforms in banking and the electricity sector, reducing distortions in the labor market, and continuing efforts to strengthen governance and limit the spread of corruption.
An International Monetary Fund report, issued at the end of last month, reviewed the most prominent positives achieved by Iraq at various economic and development levels, suggesting “non-oil GDP growth of 5 percent in light of the significant expansion in public finances within the framework of the effective three-year budget law.”
Pointing out that “to continue implementing the budget, strong non-oil growth should continue in the current year 2024.”
However, the Fund expressed its fear of a decline in oil production after the closure of the oil pipeline linking Iraq and Turkey, and reducing production based on the request of the OPEC + group, likely to lead to This will reduce the growth of the gross domestic product in the years 2023 and 2024.”
According to a team of International Monetary Fund experts, led by Jean-Guillaume Poulain,
“the inflation rate has declined from the peak it reached by 7 percent in January of last year, and
inflation is expected to stabilize in the coming months, thanks to the
Central Bank of Iraq’s policy of Tighter monetary policy, the
impact of the rise in the Iraqi dinar exchange rate,
lower global food prices, and the
return of trade finance operations to normal with
improved compliance with the anti-money laundering and counter-terrorism financing framework.”
For his part, the economic affairs specialist, Ali Karim Al-Diffai, pointed out that the
economic achievements achieved by the government during the past year are very important and positive, stressing that
these achievements will be reflected positively during the current year 2024 through
increased development rates and a
decline in inflation, poverty and unemployment rates,
pointing out at the same time In the same way,
government support for the private sector will enhance the economic recovery, and
will lead to the employment of many workers and
move the wheel of industry.
Al-Diffai also praised the decisions of the monetary authority that contributed to undermining the dollar and reducing its frightening rises, indicating that
this policy led to the stability of the prices of goods and materials in the local markets, and
thus the recovery of the purchasing power of the individual and the increase in the volume of local production,
calling on government agencies to issue more decisions that This will achieve positive results at the economic level in the country, explaining that
the World Bank report mentioned many positive points that Iraq has achieved as a result of those decisions taken by the government, which are in the interest of supporting various productive sectors, agricultural, industrial, and even tourism.
https://alsabaah.iq/89799-.html
