World Bank forecasts and estimates for the Iraqi economy during 2018
The World Bank published its forecasts and estimates for the Iraqi economy during 2018, where positive indicators overshadowed the scene despite warnings of the fragility of the situation because of the dangers of the situation in Iraq.
Population and Poverty Rates
Iraq has a population of 38.5 and a GDP of $ 197.7 billion. The poverty rate in line with the poverty line of $ 3.2 per day is 17.9%.
The growth rate of the Iraqi economy is expected to accelerate as the security situation improves, with 4.4% in the non-oil sector in 2017, despite the slow pace of reconstruction activities due to the consequences of the war and low oil prices amid hopes of reforming the structure of the economy and addressing the problem of displacement.
Needs of Iraq
Iraq’s needs for reconstruction estimated at 88 billion dollars, but the positive indicators of the situation slightly according to the report, where inflation recorded a low rate in 2017 by 0.1% and the total budget deficit fell to 2.2% last year.
Improved financial output helped stabilize the public debt in 2017 after an increase in borrowing and debt guarantees. The debt ratio stabilized compared to GDP in 2016, for example, at 64%.
Foreign exchange reserves began to rise in 2017 to cope with external shocks.
The World Bank expects Iraq’s growth prospects to improve due to a favorable security environment and gradual recovery of investment for reconstruction amid forecasts of GDP growth despite an OPEC cut-off agreement that obligates Iraq to commit. Source