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FINANCIAL NEWS
Iraqi economy to shrink 2.7 percent in 2014
29 Oct 2014
(MENAFN) According to the International Monetary Fund, Iraq’s economy is likely to shrink 2.7 percent this year, the first contraction since the invasion which was led by the US back in 2003, due to the unstable political situation the country is currently facing, Gulf News reported.
The current economic downturn comes after a 4.2 percent gross domestic product growth in 2013, which was the weakest rate since 2007, though experts believe that growth should pick up again to a modest 1.5 percent in 2015 mainly driven by a rise in oil output.
The IMF added that it expects that the expansion of Iraq’s oil production is expected to decline slightly to 2.9 million barrels a day, while exports of 2.4 million barrels a day it currently has should remain close to that level
Meanwhile, non-oil GDP growth will also likely move to negative territory, compared to growth of over 7 percent in 2013, as a result of disruptions to the supply of fuel and electricity as well as an increase in the costs of trade and distribution.
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