Iraq's economy expected to rise 4 percent in 2019

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Iraq's economy expected to rise 4 percent in 2019

Post  Admin on Mon Sep 24, 2018 10:08 pm

25/9/2018 12:00 am

Baghdad / Follow-up morning
A recent report issued by the Arab Monetary Fund revealed that there are many factors that are expected to affect the prospects of economic growth in Iraq beginning in 2019, the most important of which is the improvement of internal conditions, which enhances the levels of economic activity in the non-oil sector, while the oil sector will benefit Of the expected increase in production quantities beginning next year, which will enable commitment to future development projects of international fields
Oil.


Growth rates
Iraq's economy is expected to grow by 1 percent this year and next year to 4 percent, boosted by increases in oil production and the pace of improving domestic conditions, the report said.


The general level of prices rose by 0.7 percent during the month of May compared to the same month of the previous year due to high prices of tobacco, clothing, footwear, health, transportation, education and miscellaneous goods and services.


Inflation expectations
In terms of inflation expectations for 2018 and 2019, inflation is expected to be around 1.7 percent and 1.8 percent in 2019. "The year 2018 is expected to end with an inflation rate of 3 percent, while in 2019 it will drop to 1 Percent in the GCC. "


As for inflation expectations in the Arab countries during 2018 and 2019, the general price level is expected to be affected by several internal and external factors.


At the internal level of the Arab countries, the inflation rate is expected to be affected by high aggregate demand levels and by the continued action taken by some countries to reform the support systems.


Taxes and Fees
The report added that inflation rates in the Arab countries affected by the imposition of taxes and raise government fees, as well as commodity imports, and affected by some of the upward trends in oil prices since the beginning of 2018.


The oil market witnessed significant gains during the first half of this year, ending the basket of mid-transactions of $ 18.2, compared with the average price recorded in the first half of 2017, up 36.3 percent.


The price of oil at the end of June 2018 to 72.22 dollars a barrel, which represents the highest level of oil prices in 3 years ago. The inflation rate is expected to be about 11.4 percent in 2018; inflation in Arab countries is likely to decline in 2019 to 8.3 percent.


Oil exporters
In detail, for Arab oil exporters, inflation is expected to reach 7.6 percent in 2018, from 5.7 percent in 2017. In the 2019 forecast, inflation is likely to reach about 6 percent in that group.


Saudi Arabia ended the first half of 2018 with an inflation rate of 2.9 percent as a result of the introduction of VAT and the reform of energy products prices. The Arab Monetary Fund is expected to reach 2.9 percent by the end of this year as a result of curbing inflation following a number of simultaneous economic reforms with the tax and oil prices.


In the UAE, inflation is expected to reach 3.5 percent in 2018 due to value added tax and selectivity, compared with a drop of 2.5 percent next year.


Kuwait is expected to witness inflation by 3.1 percent by the end of this year, to reach 2.5 percent in 2019


percent. In Bahrain, inflation is expected to reach 2.2 percent by the end of 2018, and by 3.5 percent by 2019.


The report focuses on rising inflation in Bahrain as a result of government measures due to Bahrain's current economic crisis, as well as selective taxation and added value.


In Oman, inflation is expected to reach 2 percent by the end of 2018.


But is likely to rise to 3 percent by 2019 as a result of government policies to reduce levels of support in society.




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