Iraq: Iraq GDP to Shrink as Violence Rages

Oct 8, 2014 | Gulf News Daily
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DUBAI: The economy of Iraq will contract this year due to fighting ravaging the country, the International Monetary Fund (IMF) said yesterday, slashing its earlier projection of a healthy growth.

Jihadists from the Islamic State group seized swathes of territory in Iraq and Syria in an offensive, and a US-led coalition has been launching strikes against the group.

The IMF said in its October World Economic Outlook that Iraq's gross domestic product (GDP) is forecast to shrink by 2.7 per cent this year, down from the 5.9pc growth it forecast in April. The fighting has prevented Baghdad from exporting oil to Turkey via pipeline and to Jordan by road.