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World Bank expects stronger Iraqi growth

 
 

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World Bank, 7 January 2016

The World Bank expects the Iraqi economy to grow 3.1 percent in 2016, according its flagship “Global Economic Prospects“ report released yesterday.

This follows an estimated growth of 0.5 percent last year, driven by increased oil production.

Growth rates of 7.1 percent and 6.5 percent are predicted for 2017 and 2018 respectively.

These figures are based on the assumption that the impact of the Islamic State group (IS, ISIS, ISIL, Daesh) on Iraq’s economy will slowly become more limited.

The report warns, however, that with external financing conditions expected to tighten, Iraq could have difficulty attracting enough foreign capital to finance its deficit.

“Budget deficits were financed in 2015 predominantly by borrowing from stateowned banks, the Development Fund for Iraq having been exhausted by 2014,” the report argues, adding that “bank borrowing is putting liquidity under strain“.

World Bank
7 January

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