The World Bank sounds the alarm in Iraq: The food security crisis is worrying

[yota691]

World Bank: Electricity shortage in Iraq limits the growth of the non-oil sector

money and business
   

Economy News _ Baghdad

 The World Bank confirmed that the lack of electricity in Iraq limits the growth of the non-oil sector, expecting the country's gross domestic product to grow to 8.8 in the current year 2022.

The bank said in a report for the month of June seen by "Al-Iqtisad News", that "it is expected that the GDP growth in Iraq will reach 8.8% in 2022, driven by the recovery in the oil sector with the gradual abolition of the restrictions on production decided by OPEC +."

He added, however, that "the lack of electricity supply, exacerbated by the imbalances in energy imports and the limitations of absorptive capacity, leads to limiting the growth of the non-oil sector."

He pointed out that "Iraq is expected to witness the highest growth in GDP during 2022 for the Arab countries and Iran, at 8.8%, followed by Saudi Arabia with a growth rate of 7%, and then Egypt with 6.1%," noting that "the GDP growth in Iraq will decrease In 2023, it will reach 4.5%, while the highest GDP growth in the region in this period will be for Djibouti, at a rate of 5.2, followed by Egypt at 4.8%, and the GDP growth of Iraq for the year 2024 will decrease to 3%, similar to the rest of the countries in the region.

Iraq suffers from a continuous crisis of power outages despite spending millions of dollars on this sector as a result of rampant corruption in this file, while it is currently importing gas from Iran to feed power stations, which led to the accumulation of debts on Iraq while Iran threatens from time to time By cutting off the gas unless it pays its dues from the supplied gas.

 

 

 

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Views 68

Added 06/08/2022 - 9:56 AM

Update 06/08/2022 - 5:30 PM

[ronscarpa]

8.8% Growth Expected in Iraq this year

9th June 2022 in Iraq Industry & Trade News

By John Lee.

 

GDP growth is forecast to hit 8.8 percent this year, according to the World Bank's latest Global Economic Prospects report.

This represents a small reduction on the previous forecast of 8.9 percent, issued in April.

 

Growth projections for the following two years remain unchanged, at 4.5 percent in 2023 and 3.0 percent in 2024.

 

Click here to download the full report.

(Source: World Bank)

Link: https://www.iraq-businessnews.com/2022/06/09/8-8-growth-expected-in-iraq-this-year/

[horsesoldier]

Sounds good although my expectations for my bank account have yet to be fulfilled...

[rvmydinar]

20 hours ago, ronscarpa said:

8.8% Growth Expected in Iraq this year

So what? 8.8% growth is useless because only the wealthy and corrupt politicians can enjoy the 8.8% growth to the fullest. However , The ordinary iraqi citizens still and will live in poverty as long as the corruption still exists in iraq. Also, The price of all goods are still pricey as long as the rate is still 1,460.

[Goggles]

On 6/8/2022 at 7:36 AM, yota691 said:

World Bank: Electricity shortage in Iraq limits the growth of the non-oil sector

money and business
   

Economy News _ Baghdad

 The World Bank confirmed that the lack of electricity in Iraq limits the growth of the non-oil sector, expecting the country's gross domestic product to grow to 8.8 in the current year 2022.

The bank said in a report for the month of June seen by "Al-Iqtisad News", that "it is expected that the GDP growth in Iraq will reach 8.8% in 2022, driven by the recovery in the oil sector with the gradual abolition of the restrictions on production decided by OPEC +."

He added, however, that "the lack of electricity supply, exacerbated by the imbalances in energy imports and the limitations of absorptive capacity, leads to limiting the growth of the non-oil sector."

He pointed out that "Iraq is expected to witness the highest growth in GDP during 2022 for the Arab countries and Iran, at 8.8%, followed by Saudi Arabia with a growth rate of 7%, and then Egypt with 6.1%," noting that "the GDP growth in Iraq will decrease In 2023, it will reach 4.5%, while the highest GDP growth in the region in this period will be for Djibouti, at a rate of 5.2, followed by Egypt at 4.8%, and the GDP growth of Iraq for the year 2024 will decrease to 3%, similar to the rest of the countries in the region.

Iraq suffers from a continuous crisis of power outages despite spending millions of dollars on this sector as a result of rampant corruption in this file, while it is currently importing gas from Iran to feed power stations, which led to the accumulation of debts on Iraq while Iran threatens from time to time By cutting off the gas unless it pays its dues from the supplied gas.

 

 

 

---

Views 68

Added 06/08/2022 - 9:56 AM

Update 06/08/2022 - 5:30 PM

 

Does the non oil sector not have enough financial utilities available to buy into some solar back-up? They have a mass abundance of sunlight to make it work, right?

[Theseus]

14 hours ago, Goggles said:

 

Does the non oil sector not have enough financial utilities available to buy into some solar back-up? They have a mass abundance of sunlight to make it work, right?

Solar is great if you have abundant sunlight but what is even greater is the infrastructure to capture and deliver that energy that goes along with solar. And Iraq lacks vital infrastructure for even that. Unless solar is turned into electricity and delivered through the air (Tesla anyone?), Iraq needs vital power infrastructure to make any mode of energy work. And therein lies the rub. 

[yota691]

Obstacles identified

Parliamentary Investment talks about the 'best solution' to advance economic development in Iraq

2022.06.11 - 10:01

 

Baghdad - people  

Member of the Investment and Development Committee in the House of Representatives, Muhammad Al-Ziyadi, said that his committee is fully convinced that the best solution to move the wheel of economic development in the country will be through the investment portal .  

  

 

Al-Ziyadi explained in a statement to the official newspaper, followed by "Nass" (June 11, 2022), that In its first meeting, the committee discussed investment obstacles and how to reformulate the work of the law and the defectto evaluate it in order to arrive at a clear strategy that saves Iraq from his economic situation, through investment.”  

  

He added that  the committee is "fully convinced that a quick and successful investment is the solution."to develop the economy in the country,” noting that The investment file in Iraq is very difficult In view of the surrounding conditions and the situation security and social.  

  

And between Al-Zayadi, that “The Committee cannot Judgment on the reluctance of the file  unless its  priorities are explored and access to work sites Study it and see its development. What are the difficulties it faces and how? over coming it and then correcting it  permanently.” Revealing the formation of a research team to find out the projects implemented in these areas Roads and through field visits in Baghdad and provinces.”  

  

Al -Ziyadi pointed out that " the committee will work to invest in the agricultural sectors industrial and social in the next phase.  

  

  

  

A press report pointed to the recovery of the Iraqi economy, and stressed the need to invest the financial abundance derived from oil sales.  

  

According to the report published by the Federation of Arab News Agencies (Fana), and followed by "Nass" (25 May 2022), "the government succeeded during two years of its work on the strategy of the white paper in achieving the highest economic growth rate in the Arab countries, according to the reports of the International Monetary Fund. ".    

  

The report pointed to "the importance of having a return to all government performance of economic activities, restructuring oil policy and achieving balance between financial, monetary and investment policies."    

  

  

Below is the text of the report.   

The compass of the Iraqi economy is heading towards development with deliberate steps, after oil sales achieved a financial surplus, which was confirmed by Finance Minister Ali Abdul-Amir Allawi.    

  

Allawi indicated that "Iraq will have a surplus of the difference in selling oil, up to 20 billion dollars," stressing that "in light of the current financial abundance, it is unlikely to resort to borrowing."    

  

The steps taken by the Iraqi government, through the white paper that it announced after its formation, have clearly reflected on economic development, which was disclosed by Prime Minister Mustafa Al-Kazemi, who said: “The government succeeded during two years of its work in achieving the highest rate of economic growth at the level of the Arab countries.” According to reports from the International Monetary Fund, which expected that the economic growth rate in Iraq would reach 9.5 percent during 2022 and 2023.    

  

According to the report, economists confirm that Iraq needs to invest the financial surplus in the completion of large development projects, but with a delay in approving the general budget for the current year 2022, the investment of these funds remains idle.    

  

The financial advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, said: "The important investment accelerators are linked to the budget law for the year 2022, through the new investment spending sections and new investment programs, and not by spending 1/12 of the actual current expenditures in the past year 2021."    

  

And he indicated that "the average oil revenues for the current year will increase by no less than 60 percent of the revenues of oil exports for the year 2021, which means that there will be a large financial reserve available to the state at the end of the year that may exceed 40 billion dollars."    

  

Salih pointed out that "Iraq has put at the forefront of its priorities seeking to enter the prospects of rapid development and development to transcend the stage of the rentier economy or the unilateral economy, where crude oil still constitutes the largest weight in the components of the gross domestic product."    

  

He explained that "the five-year and ten-year economic and social development plans are what determine the sectoral and total growth rates in order to bring about a fundamental change in the contribution of the vital sectors producing other than the crude oil sector to the gross domestic product, which is what is called diversification of the production structure of the overall economy."    

  

Saleh pointed out that "the importance of changing production patterns and its components in employing labor and investing in national capital for the benefit of the real vital sectors, starting from maximizing the role of the agricultural sector in the gross domestic product and ending with the manufacturing industry and digital services, without forgetting that there is a major limitation on that diversification represented in the consistent project." investment in physical and institutional infrastructure.    

  

He stressed that "the growth in the various sectors increases by a double rate whenever the rates of investment in the infrastructure of the economy increase, foremost among which are six sectors: electricity, water, transport, communications, education and health. Thus, nations progress on the basis that development management is joint between state programs and private sector programs in an integrated manner."    

  

Saleh suggested the establishment of a fund or account concerned with budget stability and fed annually with a percentage of the surplus oil revenues, to hedge against the risks of price fluctuations.    

  

For her part, the economic expert Salam Sumaisem said, "The increase in oil prices is supposed to be directed to areas where the Iraqi economy suffers from a lack of funding, the most important of which is bridging the deficit gap in the public budget, and that it is directed to development purposes and improving the situation of the citizen, especially the health file, especially with The outbreak of the pandemic and the presence of hospital suffocation phenomena, as well as providing expenses to meet the needs of the ration card and improve its quality.    

  

She added that "there is an important issue represented in the economic vision and benefiting from these funds and caution against their loss and loss of oversight and transparency, as there are no reports regarding the final accounts provided by the Financial Supervision Bureau, as well as waiting for Parliament to approve the current year's 2022 budget."    

  

In turn, the economic expert, Tariq Al-Ansari, said: “The rise in oil prices can be called (the oil market uprising) due to three cases or problems that occurred in the oil market, which are the increased demand for fuel in Europe due to the decrease in European stocks by 11 percent, and the establishment of the United States By withdrawing the strategic oil stockpile and declining exports to Kazakhstan, which is a member of the Organization of the Petroleum Exporting Countries.    

  

Al-Ansari added that "this increase represents successful and good indicators of reviving the Iraqi economy if it is properly and properly utilized within the economic engineering of Iraq's oil policy, leading to the absorption of unemployment and the reduction of loans, which has become a burden on the Iraqi economy, the public budget and the Iraqi citizen in particular."    

  

He stressed, "This increase should follow the example of what some countries did by placing them within the generational support strategy, as economists in oil policy tended to directly strengthen the fund for their countries," stressing "the need to take the right and proper measures in oil policy and achieve an increase in the economic system." In Iraq, as it is a fragile system, it does not adopt standards for how to use these increases so that they will be reflected on the Iraqi economy and citizens.”    

  

Al-Ansari pointed out that "the importance of resuming all government performance of economic activities, restructuring the oil policy, achieving a balance between financial, monetary and investment policies, and working to activate the sovereign fund, as we call it, the Generation Fund, and building it in a way that guarantees a solid and sober economy because opportunities in the economy do not always come in Normal circumstances, but always difficult circumstances.    

  

For his part, the economic expert, Nabil Jaafar, said, "There is a new wave of rising crude oil prices, and it is possible to invest this to break the financial constraint that prevents real economic development, and to invest large sums that can be allocated to activate the investment side and establish some strategic projects that generate goods and services. affecting the achievement of a qualitative leap for the Iraqi economy.    

  

Jaafar pointed out, "The importance of working to establish a sovereign fund and a financial and economic buffer, because the rise in oil prices will not continue, and we will face in the coming years factors of a decline in prices, so this fund is important to maintain to ensure the future for future generations."   

  

[yota691]

Parliament is studying a new strategy to promote investment

Saturday 11 June 2022 79

 

  Baghdad: Omar Abdul Latif

 

Member of the Investment and Development Committee in the House of Representatives, Muhammad Al-Ziyadi, said that his committee is fully convinced that the best solution to move the wheel of economic development in the country will be through the investment portal.

Al-Ziyadi explained, in an interview with "Al-Sabah", that "the committee, in its first meeting, discussed obstacles to investment and how to reformulate the work of the law and the defect in it to evaluate it in order to reach a clear strategy that saves Iraq from its economic situation, through investment."

He added that the committee is "fully convinced that investment is the quick and effective solution to developing the economy in the country," noting that "the investment file in Iraq is very difficult given the surrounding circumstances and the security and social situation."

Al-Ziyadi cautioned that “the committee cannot judge the reluctance of the file unless it explores its priorities, access to work sites, study them, determine the extent of their development, what are the difficulties it faces and how to overcome them, and then evaluate them definitively,” revealing that “a research team has been formed to realistically stand on the projects implemented in these ways.” Roads and through field visits in Baghdad and the governorates, as well as a close meeting between the Committee and the Investment Authority and its staff to form a clear picture and issue the right decision for the success of the operation.

Al-Ziyadi pointed out that the committee "will work to invest in the agricultural, industrial and social sectors during the next stage."

 

 Editing: Ali Abdel Khaleq

[6ly410]

The World Bank sounds the alarm in Iraq: The food security crisis is worrying

Posted 9 seconds ago

 

The World Bank sounds the alarm in Iraq: The food security crisis is worrying - Iraq News (iraqakhbar-com.translate.goog)

 

news source /Iraq Today Agency

Baghdad - Iraq today:

A report issued by the World Bank warned of the impact of the delay in forming the government and approving the budget on the growth of Iraq's economy.

The report said, "Iraq is gradually emerging from the deep recession that it experienced in 2020 due to the Corona Virus (Covid-19) pandemic and the accompanying collapse in oil prices, as after a contraction of more than 11% in 2020, the Iraqi economy achieved a growth rate of 2.8% in 2021 with the easing of restrictions imposed by the Corona pandemic on movement, and this growth was supported by a strong expansion in non-oil production, especially in the services sector.

He added, “With the gradual cancellation of the “OPEC +” production cuts, the oil GDP also began to grow in the second half of 2021, and the rise in oil revenues prompted a surplus in public financial balances and total external balances in Iraq in 2021. “.

The report quoted Saroj Kumar Jha, Regional Director of the Mashreq Department at the World Bank, as saying: “Iraq has a unique opportunity to undertake urgent and wide-ranging structural reforms through 3 means: taking advantage of the fiscal space resulting from its recent sudden oil revenues, and secondly, redirecting government spending towards programs that Improving growth is critical to economic diversification and job creation, and thirdly, addressing the country’s human capital crisis.”  

The World Bank report confirms that “the current food security challenges in Iraq have intensified in the midst of the current rise in global commodity prices, while the level of local food production is less than the level of demand caused by rapid population growth, and severe droughts and other climate change factors have led To exacerbate this situation, and while subsidies and direct transfers can help mitigate these negative impacts in the short term, achieving food security requires coordinated efforts to improve local food production and more efficient management of water resources.”

The report pointed out that “Iraq’s financial, social and economic challenges underscore the need to accelerate the much-needed macro-structural and financial reforms to remove obstacles to private sector development, increase investments in water efficiency and agri-food systems, and shift towards more sustainable sources of energy, in addition to Decarbonization of the transport sector.

The report says, “A further delay in forming the government and approving the 2022 budget may limit the use of the country’s sudden oil revenues, as the actual ceilings of the 2021 budget have been reached, and the implementation of new investment projects may be suspended, which may reduce economic growth.” The white paper “developed by the Iraqi government remains a model and a bold blueprint for a comprehensive economic reform program towards economic diversification.”

The report singles out a special chapter on the “Corona pandemic and the human capital crisis,” and says, “A child born in Iraq prior to the Corona pandemic may have only 41% of productivity when he reaches the age of eighteen than it would have been if he enjoyed a full education and full health, as The pandemic has affected the human capital in Iraq by negatively affecting the health of workers today and their level of economic well-being, as well as by reducing the potential productivity of the future generation in Iraq. Addressing such challenges requires taking an educational reform path to raise the level of learning and skills development among Iraqi children. .

 

 

[6ly410]

The World Bank: The growth of Iraq's economy is linked to the formation of the government and the approval of the budget

Thursday 16 June 2022 20:32 | البنك الدولي: نمو اقتصاد العراق مرتبط بتشكيل الحكومة واقرار الموازنة (ninanews-com.translate.goog)

Baghdad / NINA / - A report issued by the World Bank warned of the impact of the delay in forming the government and approving the budget on the growth of Iraq's economy.

The report stated, "Iraq is gradually emerging from the deep recession that it experienced in 2020 due to the Corona Virus (Covid-19) pandemic and the accompanying collapse in oil prices, as after a contraction of more than 11% in 2020, the Iraqi economy achieved a growth rate of 2.8% in 2021 with the easing of restrictions imposed by the Corona pandemic on movement, and this growth was supported by a strong expansion in non-oil production, especially in the services sector.


He added, "With the gradual cancellation of the "OPEC +" production cuts, oil GDP also began to grow in the second half of 2021, and the rise in oil revenues prompted a surplus in public financial balances and total external balances in Iraq in 2021. ".


The report quoted Saroj Kumar Jha, Regional Director of the Mashreq Department at the World Bank, as saying: “Iraq has a unique opportunity to undertake urgent and wide-ranging structural reforms through 3 means: taking advantage of the fiscal space resulting from its recent sudden oil revenues, and secondly, redirecting government spending towards programs that Improving growth is critical to economic diversification and job creation, and thirdly, addressing the country’s human capital crisis.”

The World Bank report confirms that “the current food security challenges in Iraq have intensified in the midst of the current rise in global commodity prices, while the level of local food production is below the level of demand caused by rapid population growth, and severe droughts and other climate change factors have led To exacerbate this situation, and while subsidies and direct transfers can help mitigate these negative impacts in the short term, achieving food security requires coordinated efforts to improve local food production and more efficient management of water resources.


The report pointed out that "the financial, social and economic challenges in Iraq underscore the need to accelerate the pace of much-needed macro-structural and financial reforms to remove obstacles to private sector development, increase investments in water efficiency and agri-food systems, and shift towards more sustainable sources of energy, in addition to Decarbonization of the transportation sector.


The report says, "A further delay in forming the government and approving the 2022 budget may lead to limiting the use of the country's sudden oil revenues, as the actual ceilings of the 2021 budget have been reached, and suspending the implementation of new investment projects, which may reduce economic growth." The white paper "developed by the Iraqi government remains a model and a bold blueprint for a comprehensive economic reform program towards economic diversification."


The report singles out a special chapter on the “Corona pandemic and the human capital crisis,” and says, “A child born in Iraq prior to the Corona pandemic may have a productivity of only 41% when he reaches the age of eighteen, than it would have been if he enjoyed a full education and full health, as The pandemic has affected the human capital in Iraq by negatively affecting the health of workers today and their level of economic well-being, as well as by reducing the potential productivity of the future generation in Iraq. Addressing such challenges requires taking an educational reform path to raise the level of learning and skills development among Iraqi children. . /finished8

 

[dinarham]

. The FSA authorizes a substantial amount of money to be allocated to every citizen in Iraq , approximately 40,000,000 people. I believe the budget was $117,000,000,000 USD , or the equivalent of apprx $29,000 USD per person . How are these funds going to be distributed ? other than everyone being given a card that holds that value or credit . Atm's would then spring up and dispense 20's ,50's and 100's or the equivalent thereof . 

[WheresmyRV?]

Them guys aren't happy unless they're in a crisis.  Just another way to borrow more money from the World Bank.

Edited June 17, 2022 by WheresmyRV?

[jg1]

1 hour ago, dinarham said:

. The FSA authorizes a substantial amount of money to be allocated to every citizen in Iraq , approximately 40,000,000 people. I believe the budget was $117,000,000,000 USD , or the equivalent of apprx $29,000 USD per person . How are these funds going to be distributed ? other than everyone being given a card that holds that value or credit . Atm's would then spring up and dispense 20's ,50's and 100's or the equivalent thereof . 

Doh! Did you say 20’s. Might as well give out some 10’s and 5’s and 1s too.

[horsesoldier]

https://youtu.be/suY06PVK_bI

German U boat crewmen sounds the alarm - hope Iraq heard this !!

Edited June 17, 2022 by horsesoldier

[yota691]

A 'unique' opportunity for repairs

An international report: Iraq is emerging from the “Corona stagnation” .. but it collides with the crisis of delaying the 2022 budget

2022.06.16 - 17:02

 

Baghdad - people  

The World Bank Group said today, Thursday, that Iraq is gradually emerging from the deep recession that it experienced in 2020 due to the Corona Virus (Covid-19) pandemic and the accompanying collapse in oil prices, but at the same time it warned of the repercussions of delaying the approval of the financial budget.   

 

 

  

The report, which was followed by "Nass" (June 16, 2022), said that despite expectations that the Iraqi economy will grow by an average of 5.4% annually between 2022 and 2024, macroeconomic expectations are surrounded by a large degree of risks due to the high dependence on oil, and the continued The stalemate in the budget, and the delay in forming the new government.  

  

The report also emphasized that dependence on oil alone could harm domestic motivations to implement economic reforms, which would deepen the country's structural economic challenges.  

  

The report concluded that, after contracting by more than 11% in 2020, the Iraqi economy achieved a growth of 2.8% in 2021 with the easing of restrictions imposed by the Corona pandemic on movement, and this growth was supported by a strong expansion in non-oil production, especially in Services sector.  

  

With the phasing out of OPEC+ production cuts, oil GDP also began to grow in the second half of 2021, and higher oil revenues pushed Iraq's fiscal and aggregate external balances to surplus in 2021. Public finances continue to stagnate, and uncollected arrears remain large.  

  

Commenting on this, Saroj Kumar Jha, Regional Director of the Mashreq Department at the World Bank, said: “Iraq has a unique opportunity to undertake urgent and wide-ranging structural reforms by taking advantage of the fiscal space created by its recent windfall oil revenues.  

  

  

The report reveals that the current food security challenges in Iraq have intensified in the midst of the current rise in global commodity prices, while the level of local food production is less than the level of demand resulting from rapid population growth. Severe droughts and other climate change factors have exacerbated this situation  

  

While direct subsidies and transfers can help mitigate these negative impacts in the short term, achieving food security requires coordinated efforts to improve local food production and more efficient management of water resources.  

  

Iraq’s financial, social and economic fragility underscores the need to accelerate much-needed macro-structural and financial reforms to remove impediments to private sector development, increase investments in water efficiency and agri-food systems, and shift towards more sustainable sources of energy, in addition to decarbonizing the private sector. Transport.  

  

Further delay in forming the government and approving the 2022 budget may limit the use of the country's sudden oil revenues, as the actual ceilings of the 2021 budget have been reached, and suspend the implementation of new investment projects, which may reduce economic growth.  

  

As for the "white paper" drawn up by the Iraqi government, it remains to this day a model and a bold blueprint for a comprehensive economic reform program towards economic diversification.  

  

  

For example, a child born in Iraq before the Corona pandemic may have a productivity at the age of eighteen that is only 41% of what it would have been if he had enjoyed a full education and full health. The pandemic has affected Iraq's human capital by negatively affecting the health and economic well-being of today's workers, as well as by lowering the potential productivity of Iraq's future generation.  

  

Addressing such challenges requires taking a path of educational reform to raise the level of learning and skills development for Iraqi children.