Iraq’s non-oil GDP expected to grow by 5% in 2023: IMF

Iraq’s non-oil GDP expected to grow by 5% in 2023: IMF

On Tuesday, the International Monetary Fund (IMF) announced that non-oil GDP is expected to rise by 5 percent in 2023 due to a significant fiscal expansion.

According to a statement released by the International Monetary Fund (IMF), it is essential to maintain strong non-oil growth by continuously implementing the budget in 2024. However, the global GDP growth in 2023 and 2024 is expected to decrease due to a decline in oil output caused by the shutdown of the Iraq-Turkey pipeline and production cuts imposed by OPEC+.

The International Monetary Fund (IMF) has released its statement on the Iraqi economy, following meetings with Iraqi officials held in Amman, Jordan between December 12 and December 17.

As a result of the Central Bank of Iraq’s (CBI) stricter monetary policy, the impact of the exchange rate revaluation, lower international food prices, and improved compliance with the new anti-money laundering/combating the financing of terrorism (AML/CFT) framework, inflation has decreased from its peak in January. It is expected to remain stable in the upcoming months.

Thanks for sharing that information. It’s always good to hear about positive changes in fiscal planning and development initiatives that can benefit a country in the long run.

Due to a delayed start in budget implementation, the fiscal balance is expected to shift from a significant surplus in 2022 to a deficit in 2023.

IMF staff projections indicate that the deficit is expected to continue growing in 2024 due to the ongoing impact of current measures.

Long-term spending will strain the government’s finances due to significant rise in public hiring and pensions resulting from fiscal growth.