Iraqi News IMF: Favorable Medium-Term Outlook For Iraqi Economy

[sunshinelvr]

IMF: Favorable Medium-Term Outlook For Iraqi Economy

WASHINGTON (Dow Jones)

The International Monetary Fund announced Monday that it has concluded its annual review of Iraq's economy, finding it has a favorable outlook in the medium term but faces major challenges over the longer haul.

Lower oil prices are weighing on Iraq, and are estimated to have slowed growth to 4% in 2009, down from about 9.5% in 2008, according to an IMF staff assessment provided to the IMF board of directors last week and issued Monday.

"Iraq's longer-term economic outlook is strong as oil prices and production are projected to increase markedly in the coming years," the IMF said. However, based on conservative assumptions regarding oil prices, it projects Iraq will continue to run deficits this year and next before returning to a budget surplus in 2012.

Iraqi authorities have received about $3.6 billion from the IMF along with additional funding from the World Bank and other donors to cover the near-term funding gap. Going forward, IMF directors highlighted the need for Iraq to contain government spending on wages, allowing it to bolster spending in other areas, including improving the oil-sector infrastructure. They also encouraged Iraq to broaden its tax base by introducing a general sales tax.

On monetary policy, the IMF supported Iraq's central bank for seeking to keep core inflation at single-digit rates and called on authorities to remove remaining exchange-rate restrictions.

IMF officials praised Iraq for making substantial progress in reducing inflation, eliminating direct government subsidies for fuel consumption and putting its pension system on a more sustainable footing. It also applauded Iraq for making important advances in addressing its long-term debt load, while noting the process of bilateral debt negotiations hasn't been completed as yet.

I love that part about" removing remaining exchange-rate restrictions"!

[ALAN EDWARDS]

Go rv soon

[CowboysFan]

thanks, great post

[levi j mcguire]

That is a good post is that from tday? What is the link? Thanks!

[NotReallyTex]

Good post but do you have a link? I want to know if it's a new article. Thanks

I think I found it, this year YEAH !!

This looks real good for us.

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201003011719dowjonesdjonline000651&title=imffavorable-medium-term-outlook-for-iraqi-economy

Edited March 4, 2010 by NoOneReally
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[bubba123]

thnaks good post

[czeitner]

Great News. Thanks for the post.

[ghaggerty]

By far....the best thing I've read all day...

[mrs millionaire]

Here is the link to the story from nasdaq....

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201003011719dowjonesdjonline000651&title=imffavorable-medium-term-outlook-for-iraqi-economy

The story was written from info posted here:

http://www.imf.org/external/np/sec/pn/2010/pn1034.htm

[armondtoth]

The part that gets me, in one sentence it says Iraq's faces major challenges in the long haul, but then in the next paragraph it says their long term economic outlook is strong. Which one is it challenging or strong.

[p300pin]

great news. thanks for the post.

[CaptainJack]

IF ..... AND ITS A BIG IF .....

1. the political landscape can stablize (and remain that way)

2. they can get oil production/revenues moving upwards

3. continue to develop their infrastructure (power, water, sewage infrastructure for business and citizens)

.... we will win big within a few more years. In the meantime, say a prayer and send a silent thanks to all the Iraqis fighting for democracy and a better life for themselves and their families.