IMF: Oil to bring Iraq’s overall GDP growth to 10 percent in 2022

Baghdad (IraqiNews.com) – An International Monetary Fund (IMF) mission, led by Tokhir Mirzoev, visited to Amman, Jordan, between May 14 and 18, to discuss with the Iraqi authorities recent economic developments, the impact of global events on the economic outlook, and the country’s policy priorities, according to the IMF spokesperson, Wafa Amr.

“The economic recovery is well underway. 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,” according to a press statement issued by Mirzoev at the conclusion of the visit.

“Oil output is projected to reach its pre-pandemic level and bring overall real GDP growth to 10 percent in 2022. The war in Ukraine is affecting Iraq mainly through its global impact on commodity prices. In 2022, soaring oil revenues will more than offset the increased food and energy import bills,” Mirzoev explained in his statement.

“As a result, the fiscal and current account balances are projected to post double-digit surpluses in percent of GDP. Nonetheless, headline inflation is expected to climb to 6.9 percent, up from 6 percent last year, driven in part by higher food prices, which are adversely affecting the poorest segments of the population,” Mirzoev added.