Iraq’s economy grew by 1.4% in the past Iranian year, indicating recovery from a previous contraction. This growth is influenced by increased oil production and stability in oil prices. However, experts caution that such growth is insufficient to address unemployment and living standards, emphasizing the importance of structural reforms for long-term stability.
According to recent economic indicators released by Iran’s Central Bank, Iraq has achieved a modest economic growth of 1.4% over the past Iranian year. This figure reflects a recovery from a decline of 2.9% experienced in 2023, signaling positive momentum attributed to rising oil production and exports due to stable global oil prices.
In comparison, Iran’s economy reported a growth rate of 3.7%, with fixed capital formation increasing by 3.4% and non-oil trade expanding by 11.2%, surpassing $116 billion. Notably, the economic growth rates for Turkiye, Pakistan, and Saudi Arabia were 2.8%, 2.5%, and 1.4%, respectively. The overall growth for the Middle East and Central Asia averaged at 2.4%.
Despite the slight improvement, both the International Monetary Fund (IMF) and the World Bank caution that Iraq’s growth remains insufficient to significantly reduce unemployment or improve living standards. They emphasize that structural reforms are necessary for sustainable growth and long-term economic stability in Iraq.
The World Bank highlighted the contribution of the non-oil sectors, such as agriculture, construction, and services, which play a crucial role in Iraq’s economic expansion. However, these factors alone are not enough to foster substantial improvement in the overall economic conditions in the country, indicating the need for more robust economic policies.
In conclusion, while Iraq’s recorded growth of 1.4% indicates a potential recovery path following a contraction, experts assert that more comprehensive and sustainable strategies must be implemented to solve the ongoing structural issues and enhance the living standards of the Iraqi populace. Strengthened growth in the economy is pivotal for achieving long-term stability and addressing the challenges that remain.
In summary, the 1.4% economic growth reported by Iraq suggests a gradual recovery from previous declines, driven by oil production and exports. However, experts indicate that significant challenges remain, necessitating stronger growth and structural reforms to effectively tackle unemployment and improve living standards. Ongoing support from non-oil sectors is essential for sustaining this recovery and achieving long-term economic viability.
Original Source: shafaq.com
