The World Bank: Iraq stands at a crossroads and its GDP is the worst since 2003

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The World Bank: Iraq stands at a crossroads and its GDP is the worst since 2003

•  Time: 2020/10/01 09:51:44
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{International: Al Furat News} The World Bank considered Iraq's GDP now to be the worst since 2003.

A bank report obtained by the Euphrates News Agency, a copy of which, stated, "Iraq is now at a crossroads. After nearly two decades have passed since the 2003 war, the country is still stuck in the reality of fragility, and is facing an increasing state of political instability and escalating social unrest." And an ever-deepening gap between the state and the citizen. "
The report added, "In the midst of a number of crises (including the decline in oil prices, the Corona pandemic, and recent protests), in addition to the accumulation of the effects of weak economic policies, the absence of reforms, and the inability to address corruption, Iraq is now witnessing the worst performance of growth in annual GDP. (GPD) during the year 2020 since the fall of Saddam's regime (in 2003). "
"Lack of stability, lack of job opportunities, corruption and poor service provision remain among the most important risks surrounding the country's long-term growth," he stressed.
And the World Bank continued that "with every crisis there appears an opportunity for reform, but Iraq's path towards reform will be difficult and uncertain. If we take into account the current oil prices and the continuing decline in global oil demand due to the Corona pandemic, the country will face difficulty in meeting the needs of its people in the short term." .
He added, "However, Iraq can embark on a long road, but an urgent need for it, towards structural transformation and reform, a path that may make its economy less dependent on oil and be driven more by private sector activity. There are doubts about the country's current political economy, that such a path towards reform can no longer be avoided. "
Nevertheless, this report demonstrates that the path towards reform will require more persistence and may face many long-standing challenges to change the status quo.
This report highlights what Iraq can accomplish to maintain future growth, but it also explains the reasons that have made the country unable to date to achieve high levels of diversified growth alongside achieving peace, stability and better living standards for its citizens. ”
The World Bank also proposes . Strategic paths through which Iraq can be liberated from the reality of fragility, and where peace and stability can create the appropriate conditions for citizens to realize their aspirations, create jobs in the private sector, and achieve prosperity.
In this context, the four chapters of the report provide an insight into the main causes of fragility in Iraq and the challenges of the political economy and their effects on the diversified growth model, an analysis of the characteristics of growth in Iraq and the country's potential and the benefits of economic diversification, a diagnostic framework for trade and an assessment of Iraq's potential for trade and regional integration in order to create growth and stability, A review of the agricultural sector in Iraq, from primary farming to agri-food systems, and its ability to support economic diversification, growth and stability.
To view the text of the World Bank report ... click here

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The World Bank: The GDP in Iraq is now the worst since 2003

 OCTOBER 1, 2020

The World Bank considered the GDP in Iraq now to be the worst since 2003.
A report by the bank stated, “Iraq is now at a crossroads. After nearly two decades have passed since the 2003 war, the country is still stuck in a reality of fragility, and is facing an increasing state of instability. Political, escalating social unrest, and an increasingly deep gap between the state and the citizen.
The report added, “In the midst of a number of crises (including the decline in oil prices, the Corona pandemic, and recent protests) in addition to the accumulation of the effects of weak economic policies, the absence of reforms, and the inability to address corruption, Iraq is now witnessing the worst performance of growth in annual GDP. (GPD) during the year 2020 since the fall of Saddam's regime (in 2003).
"Instability, lack of job opportunities, corruption and poor service delivery remain among the most important risks surrounding the country's long-term growth," he stressed.
The World Bank continued that, “With every crisis, an opportunity appears for reform, but Iraq's path towards reform will be difficult and uncertain. .
He added, "But Iraq can embark on a long road, but an urgent need for it, towards structural transformation and reform, a path that may make its economy less dependent on oil and be driven more by private sector activity. The widespread protests that have erupted since October 2019 and raised doubts about the country's current political economy, make clear that such a path towards reform can no longer be avoided.
Nevertheless, this report demonstrates that the path towards reform will require more persistence and may face many long-standing challenges to change the status quo.
This report highlights what Iraq can accomplish to maintain future growth, but it also explains the reasons that have made the country unable to date to achieve high levels of diversified growth along with achieving peace, stability and better living standards for its citizens.
The World Bank also proposes strategic paths through which Iraq can be liberated from the reality of fragility, and where peace and stability can create the appropriate conditions for citizens to achieve their aspirations, create jobs in the private sector, and achieve prosperity.
In this context, the four chapters of the report provide an insight into the main causes of fragility in Iraq and the challenges of the political economy and their effects on the diversified growth model, an analysis of the characteristics of growth in Iraq and the country's potential and the benefits of economic diversification, a diagnostic framework for trade and an assessment of Iraq's potential for trade and regional integration in order to create growth and stability, A review of the agricultural sector in Iraq, from primary farming to agri-food systems, and its ability to support economic diversification, growth and stability.

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The World Bank Paints A Bleak Picture Of Iraq's Economic Future

On October 1, 2020

The Independent / - The World Bank confirmed that Iraq is now witnessing the worst growth performance in annual gross domestic product since the year 2003, between: “Corruption, instability and lack of job opportunities are among the risks surrounding the country's long-term growth.”

A bank report stated that " Iraq is now at a crossroads . After nearly two decades since the 2003 war, the country is still stuck in the reality of fragility, and is facing an increasing state of political instability, mounting social unrest, and an increasingly deep gap between the state and the citizen."

The report added, “In the midst of a number of crises (including the decline in oil prices, the Corona pandemic, and recent protests), in addition to the accumulation of the effects of weak economic policies, the absence of reforms and the inability to address corruption, Iraq is now witnessing the worst growth performance in the annual GDP ( GPD) during the year 2020 since the fall of Saddam’s regime in 2003 ″.

"Lack of stability, lack of job opportunities, corruption and poor service delivery remain among the most important risks surrounding the country's long-term growth."

The path to reform is difficult

The World Bank stated that “with every crisis there appears an opportunity for reform, but Iraq's path towards reform will be difficult and uncertain. If we take into account the current oil prices and the continuing decline in global oil demand due to the Corona pandemic, the country will face difficulty in meeting the needs of its people in the long term. Short ”.

He added, "But Iraq can embark on a long road, but the need for it is urgent, towards structural transformation and reform, which is a path that may make its economy less dependent on oil and move it more, by private sector activity."

He pointed out: “The path towards reform requires more determination and may face many challenges that exist for a long time to change the status quo.

The World Bank suggested strategic paths through which Iraq could be liberated from the reality of fragility, and where peace and stability could create the right conditions for citizens to achieve their aspirations, create jobs in the private sector, and achieve prosperity.

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Corruption ruins absolutely 

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World reserves reach a record number

Sunday 04 October 2020 4

 

  Agencies: Abu Dhabi 

 

Data from the International Monetary Fund showed that the share of the US dollar of currency reserves reported to the fund reached 61.3 percent in the second quarter of the year, down from the first three months, while global reserves rose to an unprecedented number.

A year ago, the dollar’s share was 61.3 percent as well, to remain the largest among various currencies, while it was recorded at 61.8 percent in the first quarter.

The fund data showed that global reserves rose to an unprecedented level of $ 12.031 trillion in the second quarter, compared to 11.703 trillion in the first quarter.

Total reserves in US dollars reached 6.9 trillion dollars, compared with 6.77 trillion in the previous three months.

"The US dollar still maintains a dominant position as the global reserve currency," said Barish Obadhaya, director of foreign exchange strategy and portfolio manager at Amundi Pioneer Asset Management in Boston, commenting in a recent research note.

He added, "While there has been a significant decline in the United States' share of global growth, it remains the largest economy in the world."

The dollar fell 3 percent in the second quarter, its worst since June 2017, as investors sought to exit safe havens and buy in high-risk currencies, encouraged by expectations of a rapid recovery from the recession caused by (Covid-19).

The euro’s share of global reserves stabilized at 20.3 percent in the second quarter, from 20 percent in the first.

According to IMF data, the highest level of euro reserves was in 2009, when it reached 28 percent.

The yen's share also stabilized at 5.7 percent in the second quarter, from 5.8 percent in the first. There was little change in the share of the Chinese yuan, which is 2 percent of global reserves.

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06-10-2020 08:36 PM

International Monetary: The global economy is in a "less bad" position than before

 

 

Baghdad - news

The International Monetary Fund confirmed that the global economy looks "less bad" than it was in June, and that it will adjust its forecast for global production in 2020 with a "slight" increase.

This came in statements made by the Director of the International Monetary Fund, Kristalina Georgieva, that she made during an event at the London School of Economics.

"My main message is: The global economy is rising again from the depths of this crisis," Georgieva said.

"But this disaster is not yet nearing its end. All countries are now facing what I will call the long rise, which is a difficult climb that will take a long time and will be intermittent, foggy and prone to pitfalls," she added in a speech that was considered a "removal of the star" of the annual meetings of the International Monetary Fund and the World Bank. .

Georgieva said the fund still expected a "partial and erratic" recovery in 2021. In June, the fund expected a global growth rate of 5.4 percent in 2021.

In a related context, Kristalina Georgieva suggested that the countries of the world will face huge bankruptcies and permanent economic damage if they stop prematurely the monetary and financial support provided at the present time to help their economies during the current crisis, saying: “We are completely clear in the message that we are sending which is not to withdraw support prematurely. ... if we do that we may face massive bankruptcies and massive unemployment. "

And she added that the IMF does not see a way out of the current crisis in the coming year, so it should continue to suspend debt service payments for poor countries.

She said tax reform is critical to helping countries with debt-servicing obligations, adding that very low or negative interest rates can support economies during the pandemic but entail increased risks for savers and the banking system.

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An International Report Highlights Policy Recommendations For Economic Recovery In Iraq

On October 7, 2020

Baghdad .. In a new report on the recovery of the Iraqi economy from the Covid-19 crisis, the United Nations Development Program presented recommendations that included expanding social security coverage for the poor, increasing funding revenues for major government programs, and allocating more resources for the development of the private sector.

The report, released today, entitled “The Impact of Covid-19 on the Iraqi Economy,” analyzes the effects of the epidemic on the inclusive economy, and provides a number of recommendations for policies to meet the challenges and ensure continuous progress towards achieving the sustainable development goals.

The Resident Representative of the United Nations Development Program in Iraq, Zeina Ali Ahmed, said: “Although the financial conditions and economic conditions in Iraq have been largely positive in the past few years, two major crises have delayed progress, namely the oil crisis and the Corona pandemic.

She added, “This has had major impacts on the population, especially in the areas of income, jobs and poverty, with a real possibility of inequality rising dramatically. For example, the report revealed that private sector employees in Iraq are more vulnerable to poverty risks than workers in the public sector, especially those with low incomes and workers in the informal sector, as well as female-headed households.

According to the report, it is expected that the gross domestic product of Iraq will decrease by about 10% in 2020, and that the budget deficit in the same year will reach an unprecedented level of nearly 30% of the GDP.

 

The approach that the United Nations Development Program is proposing to the Iraqi government and other key stakeholders for planning Iraq's economic recovery is two-fold:

The need to quickly identify additional financing options, avoid ill-considered monetary reforms, and improve the quality and targeting of public spending.

Supporting the non-oil private sector in achieving growth and reducing dependence on oil, while continuing to provide job opportunities for a large number of the most vulnerable and low-income families by expanding the scope of social assistance programs.

Zina Ali Ahmed emphasized that: "The United Nations Development Program and its partners are ready to support the Government of Iraq in implementing these measures, to achieve economic stability and ensure the protection of the most needy."

This follows the report, “The Impact of the Oil Crisis and COVID-19 on Iraq's Fragility,” released in August 2020.

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The US Treasury Secretary urges the International Monetary Fund and the World Bank to use their resources wisely

 

France Press

October 15, 2020

 

 

Mnuchin said the two institutions need to use their finances wisely

US Treasury Secretary Stephen Mnuchin said Wednesday that the International Monetary Fund and World Bank need to work within their existing resources to combat the coronavirus pandemic, and urged member states to adopt a proposed framework for debt restructuring.

In a statement to the institutions' steering committees, Mnuchin said they need to continue providing funding, advice and capacity development, but they need to use resources wisely and plan for the transition to regular financing arrangements.

Mnuchin added that the United States supports the International Monetary Fund’s decision regarding the debts owed by poor countries that have been severely damaged, noting that the International Monetary Fund must continue to use the available financial means to help countries struck by the pandemic, and that the Fund’s role is to focus mainly on Economic and financial stability around the world, even if it is during its response to crises 

The Minister of the Treasury called for fair use of resources so that institutions are not forced to demand funding from participating countries at an early date. 

 

The World Bank approves $ 12 billion in aid for COVID-19 vaccines

The World Bank announced, Tuesday, that its board of directors approved a $ 12 billion aid plan to ensure developing countries get access to COVID-19 vaccines quickly when these vaccines become available.

He added that it is important that the World Bank manage financial resources wisely and transparently, with clear justifications for allocations to countries that have strong access to other sources of financing, so as not to burden shareholders with premature calls for new financing.

Mnuchin urged G20 member states to quickly ratify a framework for promoting timely debt solutions and providing low-income countries with a clear pathway to address their debt burden.

And the G20 countries announced, on Wednesday, the extension of the suspension of debt service to the poor countries affected by the emerging corona virus, but the measure sparked criticism from organizations and activists who considered it insufficient. 

The Group of 20 major industrialized countries committed in April to suspend debt service for the poorest countries until the end of the year due to the sharp contraction of their economies as a result of the Covid-19 epidemic. 

And the initiative was extended at a meeting Wednesday until June next year, according to what the finance ministers and the rulers of countries' banks said, following the hypothetical meeting hosted by Saudi Arabia, the current chairman of the group. 

"We have agreed to extend the suspension of debt service for six months," Saudi Finance Minister Muhammad Al-Jadaan said. 

The final statement stated that the measure could be extended until the end of 2021 during the International Monetary Fund and World Bank meeting next spring. 

"In light of the continued liquidity pressure, and while gradually addressing debt problems, we have agreed to extend the debt service suspension initiative for six months, and then we will see in the Spring 2021 meetings if the situation requires extending the mechanism for another six months," the statement added. 

"Given the scope of the Covid-19 crisis, the difficulties (of repaying) debts, and the deteriorating prospects in many low-income countries, we realize that debt treatment may require a case-by-case study in addition to the debt service suspension initiative," he added. 

He concluded, "In this context, we have agreed in principle on a common framework for dealing with debt outside of the debt service suspension initiative."