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

Inflation set to rise on higher food prices


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)

Source: Zawaya


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