World Bank: Iraq’s economy is gradually recovering

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The World Bank announced that Iraq’s gross domestic product grew by 0.9% on an annual basis in the first half of 2021, expecting an improvement in the debt-to-GDP ratio.

According to the Iraqi National News Agency, today, Monday, the bank stated in a report that economic growth in Iraq is gradually recovering after the epidemic-related contraction last year, due in part to the rise in non-oil activity, expecting that improving global oil market conditions will enhance growth. In the medium term, the fiscal and external balances will be transferred to surpluses from 2021, and the recent rise will be reflected in the debt.”

He added that Iraq’s gross domestic product grew in the first half of 2021, by 0.9% on an annual basis, and the non-oil economy grew by more than 21% in the first half of 2021 (on an annual basis) due to the strong performance in the service sectors, “noting That recovery outpaced the slowdown in the oil sector, with a 10% drop in the first half of 2121, as Iraq adjusted to its OPEC+ quota early in the year.

He pointed out that “the prospects for the Iraqi economy have improved with the recovery in the global oil markets, but the spread of the new Corona variables and the challenges of climate change are major headwinds,” expecting the economy to gradually recover against the background of high oil prices and OPEC + production quotas that are scheduled to be gradually canceled in the year 2022, and therefore oil GDP will be the main engine of growth in the medium term.”

The bank expected that “the non-oil GDP in Iraq will recover, but it will remain less than 3% on average in 2021-2023 due to the impact of the new delta variable in addition to the shortage of water and electricity that affects agriculture and industries,” noting that: “It is expected to remain The fiscal balance is in surplus over the medium term, which leads to a steady improvement in the debt-to-GDP ratio.”

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The article World Bank: Iraq’s economy is gradually recovering was written in Al Borsa newspaper.