delay adoption of the budget will lead to Stagflation in Iraq

[alan_coaks_3]

1 - 24 - 2012

Economic expert has warned of a peace Sumaisem economic problem, the so-called "stagflation" in the country in case of delay adoption of the budget due to the absorption of unemployment and delayed implementation of investment projects.

The Sumaisem in a statement to the Agency (news) on Tuesday: The late adoption of the budget and not release financial allocations their time specified will lead to economic problems, many in the country, including the so-called "stagflation" as a result of worsening unemployment and non-absorbed, in addition to their direct impact on investment plans developed by the ministries and departments by not launching investment budget allocations to it and continued disbursement of the financial allocations for operational matters.

The Sumaisem to: the local markets today are rising prices materials as a result the gap between supply and aggregate demand, asserting that the delay in adoption of the budget will affect the implementation of many of the investment projects that need it the country, which would make there is inflation in the markets and the recession in the economic process.

The economic expert called to the need to speed up the adoption of the budget for this financial year to launch early financial allocations to the provinces and ministries for the implementation of investment projects and avoid a lot of economic problems in the country.

And that Iraq is today a state of tension in the political arena, making economists worry the impact on the political crisis on economic issues at a time when the country is in dire need to implement strategic projects and service it.

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