BAGHDAD: 2018 is likely to be Iraq’s lucky year, as its economy is expected to witness a boost amid reconstruction efforts.
The Iraqi economy is forecast to grow 1.5% in 2018 before accelerating 4.5% in 2019, BMI Research, a unit of rating agency Fitch, said in a report.
“The Iraqi economy will experience a muted recovery in 2018, before picking up notably in 2019,” BMI said.
“The extension of the Opec deal until end of 2018 will continue to weigh on the country’s exports through the end of the year. However, next year the completion of new development phases of major oil fields will boost production capacities and support headline growth.”
The amount spent on the rebuilding will improve the country’s non-oil economy and higher government spending ahead of the May elections will enhance consumer spending, BMI said.
The estimated cost of reconstruction for Iraq which announced the defeat of IS at the end of 2017 is estimated at between USD88 billion and USD100bn in the next decade.
Meanwhile, the government received USD30bn in pledges at the International Conference for the Reconstruction of Iraq in February.
