Iraq Economy News for 2024, According to the IMF is not Good, Iraq Says Differently

This article information is translated from an Iraqi News Source.

Iraq's GDP growth has been hindered by restrictions on foreign currency sales, according to the International Monetary Fund.

Oil production cuts have repercussions on oil-exporting countries, as oil GDP growth has slowed following three rounds of sharp cuts in oil production under the OPEC+ agreement in October 2022, April 2023 and June 2023."

As a result of a strong manufacturing industry and a recovery in the services sector, Gulf countries' non-oil gross domestic product has grown, while Iraq's restrictions on foreign currency sales are hampering growth, he said.

In spite of the Iraqi Ministry of Planning announcing 3.5% inflation, the International Monetary Fund placed Iraq next to Algeria, which has an inflation rate of more than 9%, and Iran at 30%.

"Inflation remains high in other oil exporters, particularly Algeria, Iraq and Iran," he said. According to him, all countries except Iraq's central banks have followed in the Fed's footsteps, raising policy interest rates to an average of 100 basis points until August 2023, following the Fed's lead.

Iraq's primary non-oil balances declined due to rising public sector wages and high subsidies, according to the International Monetary Fund.

This year of positioning will record a significant slowdown in oil exporting countries, to reach 2% growth, according to the Fund. Iraq's growth is expected to decline as oil production is reduced and foreign currency will be rationalized in import-dependent sectors.

According to him, Iraq's public finance position is expected to decline in 2024 due to an increase in wages.