Iraq’s economy grew by 1.4% over the past Iranian year, reflecting a modest recovery from a previous contraction. This growth is attributed to increased oil production and exports, while non-oil sectors also play a vital role. However, challenges remain as stronger growth is needed to improve living standards and reduce unemployment.
According to economic indicators released by Iran’s Central Bank, Iraq’s economy has experienced a growth of 1.4% over the last Iranian year. This growth is part of a broader regional trend, as Iran’s economy reported a growth of 3.7%, described as stable compared to worldwide averages. Fixed capital formation in Iran rose by 3.4%, and non-oil trade surged to over $116 billion, reflecting an 11.2% increase.
Comparative figures indicate a growth rate of 2.8% in Turkiye, 2.5% in Pakistan, and 1.4% for both Iraq and Saudi Arabia. The overall growth rate for the Middle East and Central Asia stands at 2.4%. This modest growth in Iraq signifies a recovery from a prior contraction of 2.9% in 2023, as reported by the International Monetary Fund (IMF). This improvement is largely due to rising oil production and exports amid stabilizing global oil prices.
The World Bank has emphasized that non-oil sectors such as agriculture, construction, and services are vital contributors to Iraq’s economic expansion. However, both the IMF and World Bank caution that the current growth rate is insufficient to significantly reduce unemployment or enhance living standards. Sustainable and stronger growth is essential for Iraq to tackle existing structural challenges and achieve long-term economic stability.
In summary, Iraq’s economic growth of 1.4% marks a step towards recovery following a significant contraction. While this growth is aided by increased oil production and a rising contribution from non-oil sectors, it is not yet robust enough to effectively address unemployment or living standards. Long-term stability for Iraq’s economy will necessitate ongoing and accelerated growth initiatives.
Original Source: shafaq.com
