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Font Size:11/28/2012 (23:00 pm) - The number of readings: 37 - Issue (2660)
Is Iraq to become the fastest growing economy on earth?
translation term data global banking show that among all major economies that relay, Iraq is the only country that will double its growth with improvement in production gross domestic which reached 10.5% for the current year, followed by China as the second fastest economic development in the world growth rate of total production amounted 7.7%. And expect (and the Economist Intelligence Unit) the largest growth in Iraq over the next few years. Stating "as a result of rising oil production we expect that the Iraqi economy is growing at a rate of 9% during the years 2013-2017. Waves of violence, especially in the the moderation areas around Baghdad, will continue to stagger the economy, but the overall improvement in the security situation will help economic activity in some of the southern provinces harmonious ethnically and religiously, raising the wholesale and retail trade. " It is also expected that the private sector participates with the oil companies to pay development and promote the development of infrastructure and housing sectors, transport and communications. Says the International Energy Agency that the speed of recovery of Iraq over the coming decades depends heavily on the oil sector (increase the speed of production and export) and to manage the revenue and spending. In mid-2012 oil production was more than 3 million barrels per day, of which about 2.4 million barrels are exported daily. Improved stability and resource base large and signed contracts with international companies to develop oil fields large, all provide a basis for a rapid increase in oil production in the coming years, according to the International Energy Agency, which believes that Iraq will lead the growth of oil production in OPEC over the next two decades. However, adds the agency, Iraq needs to overcome a number of challenges related to investment in infrastructure, and institutional reform, and the legal framework for the oil and gas sector, and the promotion of human capacities and consolidate political stability and security. Most mentioned will depend on the internal and external stability surrounding Iraq; With the escalation of regional conflicts in Iran, Syria, and Palestine, there is a risk of Iraq's involvement in the tensions. Iraq has its own political problems that it encountered; continuous weakening of central authority and the security services had allowed the militia groups and rebels reorganizing themselves in some areas although there is no possibility of the return of violence to the levels of 2006-2007. As will a national unity government - which combines the four major political blocs - weak and divided, and maybe pull some blocks to join the parliamentary opposition. The federal government is trying in Iraq to find a solution to the long conflict with the Kurdistan Regional Government and the hardening of the more interesting because foreign oil companies Balkhozan major oil in the region. Analysts hoped the government would end the oil and gas law and solve its dispute with the provincial government in order to provide a much clearer picture of foreign oil investors who are key to financing development in Iraq. Iraq will also need to improve the financial infrastructure and legal in order to attract investments. International Monetary Fund says that "strengthening the processes central banking include the re-building the capacity of the central bank to hold monetary policy and the exchange rate, and supervision of banks, and management reserves the country's foreign exchange. Said financial restructuring of the banks main-state is an important step to help create the conditions for the banking system for the expansion of credit to the private sector. " In addition, the issue of corruption is also a critical issue because of outbreaks in the country. despite the challenges it faces on all fronts, the economy is recovering, which could raise the standard of living for many Iraqis and to expose them to the middle class, and this in turn will ensure domestic growth rather than reliance on oil exports. After suffering from inflation, which reached 70% in 2007, the CBI succeeded in reducing inflation to small numbers left on them since that time. Iraqi economy continues to grow with the revival of the oil sector and the improvement in the security situation. And with the support of the international community debt levels have fallen to very low levels. : Topix
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