By John Lee.
A new report from the International Monetary Fund (IMF) has forecast that the Iraqi economy will contract this year due to continuing war against the Islamic State.
In its October World Economic Outlook, it says that Iraq’s gross domestic product (GDP) is expected to shrink by 2.66 percent this year, down from the 5.9 percent growth it forecast in April. The fighting has prevented Baghdad from exporting oil to Turkey via pipeline and to Jordan by road.
The report goes on to predict growth rates of over the coming five years (2015-2019) of 1.455 percent, 7.617 percent, 6.693 percent, 7.712 percent, and 9.140 percent respectively, giving an average growth rate of 6.5 percent over the period.
Next year’s growth of just under 1.5 percent is down from the 6.7 percent growth projected in April.
(Source: IMF, Gulf Daily News)
(GDP image via Shutterstock)