Thursday Evening Iraq Economic News Highlights 10-6-22
World Bank: Oil Developing Countries Will Achieve 4% Growth Led By Iraq
Money and business Economy News-Baghdad The World Bank expected that developing oil-exporting countries are expected to join the Gulf Cooperation Council and achieve growth, but at lower levels, with expectations that 2022 will witness a rise in growth rates to 4.1%, led by Iraq, with growth reaching 2.7% in 2023.
The World Bank added, in the latest report on the economic developments in the Middle East and North Africa, entitled “Enhancing Transparency and Accountability in the Region”, that the economies of the Middle East and North Africa region will grow by 5.5% in 2022, to record the fastest growth rate since 2016, to reach The pace of growth to 3.5% in 2023, while it is estimated that growth in the Gulf Cooperation Council countries will accelerate to 6.9% in 2022, driven by hydrocarbon exports, with a growth rate of 3.7% in 2023.
The report pointed out that growth is uneven across the region as countries that are still striving to overcome the lasting effects of the “Covid-19” pandemic, are facing new shocks due to high oil and food prices due to global geopolitical tensions, high global interest rates as well as The slowdown in the economies of the United States, China and the Eurozone.
The report indicated that for developing oil-importing countries, it is expected to achieve a growth of 4.5% in 2022 and 4.3% in 2023, and Egypt leads this group, recording a growth of 6.6% in the fiscal year ending in June, driven by gas exports, communications and tourism.
The report concluded that the oil-exporting countries in the region will benefit from the high prices of hydrocarbons (oil and gas), while the oil-importing countries in the region face adverse conditions, as they suffer from increased pressures and risks as a result of high import bills, especially food and energy imports, and the shrinking space available for spending in their public finances. .
The report emphasized that slow economic growth in the United States and China and the possibility of recession in Europe pose risks, especially in oil-importing developing countries that rely more on tourism and external demand from Europe, as this group of countries depends more on trade with the euro area, especially countries Importing oil in North Africa and geographically closest to Europe.
The report pointed out that policy makers throughout the region have introduced some measures, especially price controls, subsidies and subsidies, to reduce the salty prices of certain commodities such as food and energy compared to their international prices, noting that this matter had an impact in keeping inflation in the region lower than in other regions. He pointed out that the average inflation in Egypt during the period from March to last July amounted to 14.3%, although it would have been higher at 18.4% if the competent authorities had not intervened.
The report pointed out that the governments of the region will continue to incur additional expenditures to increase subsidies and cash transfers to mitigate the damage to the living standards of their residents due to the rise in food and energy prices globally, while for the Gulf Cooperation Council countries and developing oil-exporting countries, this is not a major concern. Currently, as unexpected revenue increases due to higher hydrocarbon prices have significantly increased fiscal space and will lead to fiscal surpluses for most oil-exporting countries in 2022, even after increased spending on inflation mitigation programmes.
The report expected an acceleration in the per capita real GDP growth for the region to 3.9% in 2022, before declining to 2% in 2023, but this growth varies between groups of countries, and it is expected that the growth rate of per capita GDP will accelerate In the Gulf Cooperation Council countries, it will reach 5.5% in 2022, while the growth rate will reach 2.5% for the developing oil-exporting countries in the same year.
The report pointed out that for oil-importing developing countries, the per capita GDP growth rate is expected to remain at about 2.9 percent in 2022, and 2.7 percent in 2023.
The report expected that the current account balances and public finances for the Middle East and North Africa region will improve significantly in 2022, to reach 10.5% and 1.9%, respectively, driven by the rise in hydrocarbon prices. In the Gulf Cooperation Council countries, the current account balance is expected to rise to 17.2% in 2022, and 14.6% in 2023, from 7.9% in 2021. WAM
https://economy-news.net/content.php?id=30081
Politician Warns: Plasschaert’s Briefing May Push Iraq Towards International Trusteeship
2022-10-05 05:19 Shafaq News/ The Iraqi politician, former MP Mithal Al-Alusi, said today, Wednesday, that the briefing of the UN Special Representative, Jenin Plasschaert, at the UN Security Council may push towards guardianship over Iraq.
The trusteeship system applies to countries that are defined in international law as “deficient in sovereignty,” and are subject, according to special conditions, to an agreement whose implementation is supervised by the Trusteeship Council of the United Nations.
The international trusteeship system came as an alternative to the mandate system that was applied during the era of the League of Nations, which was replaced by the United Nations with its establishment in 1945, in order to settle the situation of the colonial countries in accordance with international legal legitimacy that moved them gradually from a situation of complete colonialism to a transitional situation followed by complete independence.
Al-Alusi told Shafaq News Agency, “Plasschaert’s briefing revealed to the international community the tragic situation that Iraqis are experiencing due to the corruption of parties and blocs, and the dominance of militias loyal to Iran and involved in killing and robbing Iraqis.”
And he indicated that “the international community will not remain a spectator of what Iraq is going through, and for this there is a possibility for the international guardianship to intervene in Iraq during the next stage, in order to ensure its stability, which will be reflected in the stability of the entire region and the world.”
Yesterday, Tuesday evening, Blaskharat gave a briefing to the UN Security Council on the situation in Iraq, in which she confirmed that differences prevail over the language of dialogue, and that the southern provinces are witnessing armed skirmishes and the political class is unable to resolve the crisis.
“The disappointment of the people has reached sky-high. Many Iraqis have lost faith in the ability of Iraq’s political class to work for the benefit of the country and its people. Continuing failure to address this loss of confidence will only exacerbate Iraq’s problems,” said Blackshart.
She pointed out that “the political system and the system of governance in Iraq ignore the needs of the Iraqi people. The rampant corruption represents a major root cause of dysfunction in Iraq. No leader can claim that he is protected from it. Keeping the system “as is” will rebound with negative results.” LINK
Report: Rail Freight May Be The Key To Iraq’s Ambition To Compete With Jebel Ali And The Suez Canal
Reports Economy News-Baghdad A report by theloadsta website, which specializes in the field of shipping, stated that Iraq’s ambitious plans to complete the large port of Faw may compete with other Middle Eastern ports, and even the Suez Canal, if railways were developed and freight was shipped to Turkey and then to Europe.
The report, which was translated by “Economy News”, quoted the director of the Iraqi Railways Company, Talib Jawad Al-Hasani, as saying, “Iraq is working on a project to maximize the benefit from our geographical location and serve merchants who wish to transport goods through Iraq to other countries via Turkey, once the Grand Port of Faw is completed. “.
He added, “We are working with an Italian company to conduct studies for a 1,200-kilometre railway line to the Turkish border that could provide transit transportation from Al-Faw, providing an alternative to the Suez Canal for goods traveling between East Asia and Europe.” The works were expected to be carried out by Italian, Chinese and Iraqi companies.
Italian engineering services firm PEG is expected to submit feasibility studies and designs for the “dry canal” – a series of road and rail networks connecting the new port to Turkey – by the end of this year, according to the transport ministry.
The idea of a huge port on Iraq’s southernmost peninsula of Faw, where the mouth of the Shatt al-Arab river enters the Persian Gulf, has been mooted for decades, but it wasn’t until 2010 that a concrete proposal emerged. Work eventually began in 2020, after the South Korea’s Daewoo Engineering has won a port contract worth $2.7 billion.
Some preliminary construction work has been completed, with FAO’s Guinness World Record for longest breakwater (9.02 miles) taken down, and last month the General Company for Ports of Iraq (GCPI) announced the start of piling work for five container berths.
The project is designed for up to 100 berths, which, if achieved, would see the Faw area overtake Jebel Ali Port in Dubai, with its berth of 67, as the largest in the Middle East.
According to the Global Construction Review, by 2028, FAO is expected to be able to handle around 4 million TEUs and 22 million tons of dry bulk cargo, and this is expected to reach 7.5 million TEUs by 2038.
However, a source in Umm Qasr estimated that between 1,000 and 2,000 trucks leave the port each day, meaning that the IRR’s scattered rail services were a negligible part of the current container traffic market.
“In order to effectively recharge in the future, Iraq will need several freight trains operating every day, each carrying 100 TEUs, not 40,” he said.
This would currently be a difficult task. The Iraqi Railways Company relies on aging infrastructure, some northern parts of which were severely damaged under ISIS.
Infrastructure challenges between Baghdad and Basra include tracks crossing busy main roads where, with no barriers or warning lights, trains have to slow to a crawl relying on motorists to notice and stop.
Rail relocation, especially on the scale envisaged by FAO as the Iraqi Railways plans to build five additional stations, will not only require significant investment, but will also be a radical new direction for the company, changing its long-standing focus on hydrocarbons.
There are currently 38 train stations in and around Umm Qasr (27 in the northern ports and 11 in the south). IRR is also expanding routes to the Basra Gateway Terminal (BGT) East, which was built and operated by International Container Terminal Services (ICTSI), which has reached the terminal’s fringes.
Despite Iraqi officials’ optimism about the potential of the grand port of Faw, the project has been criticized as “too ambitious”. The work has been marred by delays, and the suspicious death of the South Korean project’s head in 2020, with allegations that FAO is mired in political rivalry, corruption and contract disputes over subsequent construction phases, with the entire project expected to run at $7 billion. Views 28 Added 10/06/2022 – 9:31 AM Update 06/10/2022 – 12:51 PM
https://economy-news.net/content.php?id=30078
Al-Kazemi: The Electrical Interconnection Project Will Secure The Path Of Energy Exchange Between Iraq And Jordan
Energy Economy News-Baghdad Prime Minister Mustafa Al-Kazemi confirmed, today, Thursday, that the electrical interconnection project will secure the path of energy exchange between Iraq and Jordan, indicating that it is a true reflection and translation of the policy of openness and cooperation adopted by the government.
The media office of the Prime Minister said in a statement, “Prime Minister Mustafa Al-Kazemi and Jordanian Prime Minister Bishr Hani Al-Khasawneh laid, today, the cornerstone of the Iraqi-Jordanian electrical interconnection project.”
He added, “Al-Kazemi confirmed that the project would secure the path of energy exchange between Iraq and Jordan, which is a true reflection and translation of the policy of openness and cooperation adopted by this government.”
He added, “The two sides held a bilateral meeting, on the sidelines of the launch of the project, during which they discussed ways to develop bilateral relations and develop regional cooperation in light of the tripartite Baghdad summit, in which the leaders of Jordan, Egypt and Iraq participated,” explaining that “the meeting witnessed research into the implementation of the project.
The agreements concluded between the two countries and their entry into force, especially in the areas of electrical interconnection, agriculture, transportation, food security, and in the field of financial and banking relations, and the development of their infrastructure.
And the office indicated that “the two sides expressed the keenness of the governments of Iraq and Jordan to develop bilateral work mechanisms, in a way that integrates with the horizon of regional work and sustainable development, as well as efforts to prepare for the upcoming tripartite summit, and the political, economic, and security files that will be addressed.”
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https://economy-news.net/content.php?id=30082
The Sentencing Of Iraqi Officials In The Ministries Of Defense And Reconstruction And Housing
Shafaq News/ The Federal Integrity Commission announced today, Thursday, the issuance of two verdicts convicting officials in the Ministries of Defense and Construction and Housing, Municipalities and Public Works.
In a statement received by Shafaq News Agency, the commission’s investigations department said that the Karkh and Al-Hilla Criminal Courts, which are specialized in cases of integrity, issued two prison sentences and imprisonment in absentia against the director general of the General Directorate of Budget and Programs in the Ministry of Defense and the director general of the municipalities of Babylon, the former; For deliberately causing damage to the funds and interests of the entity in which they work and committing something that violates their job duties.
The circuit added that the Karkh Criminal Court issued a six-year prison sentence to the convict, the former Director General of the General Directorate of Budget and Programs in the Ministry of Defense; For deliberately causing damage to public funds by disbursing the amount of a contract concluded by the Ministry to supply (400) four-wheel drive “Land Cruisers” and (100) ambulances to persons not authorized to receive delivery.
And it indicated that the Hilla Misdemeanors Court, which is competent to look into integrity issues, sentenced the former director general of the municipalities of Babylon to severe imprisonment for a period of two years, for violations committed by him to the terms of the purchase contract (4) vehicles of “waste caps” type “azuz” for the benefit of the municipality of Al-Qasim from the General Company for the Automotive Industry and equipment in Alexandria.
The department indicated that the convict did not calculate the fines for the delay on the company after the expiry of the processing period of (180) days, in addition to paying 95% of the contract value.
She confirmed that the two courts issued two judgments in absentia based on the provisions of Articles (340 and 331) of the Penal Code, and issued an arrest and search warrant against them, while supporting the seizure of their movable and immovable property. LINK
Iraq Contracts With An Italian Company To Link The Port Of Faw To Turkey
Reconstruction and building Economy News – Baghdad Today, Wednesday, the General Company for Railways determined Iraq’s benefit from the international railway connection, while it announced a contract with an Italian company to link the great port of Faw with Turkey.
The Director General of the Iraq Railways Company, Talib Jawad Al-Husseini, told the official news agency, “The company has a high coordination with the governors to rehabilitate the destroyed bridges from ISIS terrorism in the northern and western provinces,” noting that “the percentage of destruction in the bridges has reached 90% in some liberated provinces.” “.
He added, “The local government in Anbar Governorate, in coordination with the General Company for Railways, is working to restore the destroyed bridges and railways, as well as efforts to re-establish the Mosul train station after it was completely destroyed by ISIS criminal gangs.”
Regarding the great port of Al-Faw, Al-Husseini indicated that “the company is working on developing and preparing studies and designs for the port, considering that more than 33% of the port’s success depends on the railway network.”
He pointed out that “the company has started a contract with an Italian company to prepare studies and designs with a length of 1,300 km, to link the great port of Faw with Turkey, and as a result, the east will be linked to the west through Turkey to market the goods coming to the port of Faw.”
He added, “The port will be one of the important projects that will achieve a qualitative leap, by raising and supporting the national economy, as a result of collecting sums through (transit) wages,” explaining that “most of the Iraqi provinces will be linked to the railway network.”
He noted that “there are 9 provinces linked to the railway network,” expressing his hope that “the Italian company will provide studies and designs according to the contract concluded to link all provinces to the railway network for the use of trains for travel and trade.”
Views 184 Added 10/05/2022 – 9:00 PM Update 10/06/2022 – 11:06 AM
