Iraqi economy to shrink 2.7 pct in 2014, first time since 2003 war-IMF

Oct 27, 2014 | Reuters
View Original

Iraq's economy is likely to shrink 2.7 percent this year, the first contraction since the U.S.-led invasion in 2003, after Islamic State militants occupied swathes of the major oil exporter, the International Monetary Fund said on Monday.

The current economic downturn comes after a 4.2 percent gross domestic product growth in 2013, which was the weakest rate since 2007, the IMF's regional economic outlook shows.

It still pales, however, in comparison with a 41.4 percent output plunge in 2003 when the U.S.-led coalition invaded the country to topple the government of its former strongman Saddam Hussein.