Iraq’s economy grew by 1.4% over the past Iranian year, indicating a recovery from a previous contraction. Key factors include increased oil production and moderate global oil prices. However, growth remains insufficient to substantially improve living standards and employment, emphasizing the need for sustained economic development.
Iraq’s economy has shown signs of improvement, recording a 1.4% growth over the past Iranian year, as reported by Iran’s Central Bank. This growth was observed in the first nine months of the Iranian year, during which Iran itself experienced a growth rate of 3.7%, described as stable compared to global and regional norms.
Noteworthy indicators point to a 3.4% increase in fixed capital formation and an 11.2% rise in non-oil trade, which surpassed $116 billion. Other countries exhibited varying growth rates, with Turkiye at 2.8%, Pakistan at 2.5%, and both Iraq and Saudi Arabia at 1.4%. The Middle East and Central Asia recorded an average growth rate of 2.4%.
This growth trajectory in Iraq is a reversal from the previous contraction of 2.9% in 2023, as noted by the International Monetary Fund (IMF). The recovery is largely attributed to a gradual rebound in oil production and exportation, alongside more stable global oil prices.
However, the World Bank emphasized that while Iraq’s expansion has been influenced by non-oil sectors such as agriculture and construction, the current growth pace remains insufficient to address unemployment or improve living standards. Both the IMF and World Bank highlighted the necessity for Iraq to achieve more significant and sustained growth to confront structural challenges and secure long-term economic stability.
In conclusion, Iraq’s economic growth of 1.4% signals a gradual recovery from previous contraction, largely buoyed by oil production and exports. Despite this positive trend, structural challenges persist, and sustained growth is essential to improve employment rates and living standards. Efforts must focus on enhancing the economy’s resilience through diversified growth beyond the oil sector to ensure long-term stability in Iraq’s economic landscape.
Original Source: shafaq.com
