Iraq’s real GDP set to expand by 10% in 2022, says IMF

The economy of Iraq is well on the recovery path and is set to expand by around 10 percent this year, according to the IMF.

In an end-of-mission statement, IMF’s Tokhir Mirzoev said: “In 2021, buoyed by the resumption of activity, a more accommodative fiscal stance, and stimulus measures by the central bank, real non-oil GDP rebounded by an estimated 20 percent and is poised to expand by around 5 percent this year.”

Oil output is projected to reach its pre-pandemic level and bring overall real GDP growth to 10 percent in 2022, he added.

Iraq, the second largest OPEC producer, currently has a production capacity of 4.9 million barrels a day (bpd).

Total exports, excluding those from the semi-autonomous Kurdistan region reached 3.380 million bpd in April, according to an S&P Global report citing the oil ministry figures.

“In 2022, soaring oil revenues will more than offset the increased food and energy import bills. As a result, the fiscal and current account balances are projected to post double-digit surpluses in percent of GDP,” IMF’s Mirzoev said.

Nonetheless, headline inflation is expected to climb to 6.9 percent, up from 6 percent last year, driven in part by higher food prices, he added.

(Reporting by Brinda Darasha; editing by Daniel Luiz)