By John Lee.
A new report from the International Monetary Fund says that Iraq’s economy is expected to shrink by 2.7 percent this year as a result of the security crisis in the country.
This follows a 4.2 percent growth in GDP in 2013 and 10.3 percent the previous year, and would be the first contraction since the change of regime in 2003. A growth rate of 1.5 percent is predicted for 2015.
Inflation is estimated at 4.7 percent this year and 6.2 percent in 2015.
The report forecasts a slight decline in oil producton to 2.9 million bpd this year, while exports of 2.4 million bpd should remain close to last year’s level.
The IMF forecasts a slight increase in oil production to 3.0 millon bpd, but has reduced its longer-term output projection from 5.6 million bpd to 4.4 million bpd in 2019.
Non-oil GDP is expected to fall by 4.3 percent this year, then grow by 3.5 percent next year.
(Sources: IMF, Reuters)
(GDP image via Shutterstock)