São Paulo – Ongoing political conflicts in Iraq should lead to a 0.5% decline in the country’s Gross Domestic Product (GDP) this year. Part of the infrastructure has been destroyed by clashes between the military and Islamic State militants. The International Monetary Fund (IMF) has convened with Iraqi authorities in Amman, Jordan, from December 2nd to 7th, and issued a statement this Tuesday (9th) about the meeting and the outlook for Iraq’s economy.
The document states that the GDP is poised to decline because part of the country’s infrastructure has been destroyed, preventing access to fuel and electricity. Business confidence and bilateral trade have also suffered as a result of conflicts.
On the other hand, the statement reads that the oil sector infrastructure is primarily in the South, beyond the reach of the Islamic State. Oil production should reach 3.3 million barrels per day in 2014, up from 3.1 million in 2013. Exports remain at 2.5 million barrels per day. In 2015, the economy is expected to rebound, driven by oil production and exports.
*Translated by Gabriel Pomerancblum
