Iraq: Iraq Economic Growth Subdued by Risks from ISIL and Volatile Oil Prices, IMF Says

Aug 10, 2017 | Mahmoud Kassem, National
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The International Monetary Fund (IMF) said Iraq's economy remained open to risks stemming from the armed conflict with ISIS and sluggish oil prices, even though medium-term prospects are positive. Declining oil prices have caused Iraq’s international reserves to plunge to $45 billion at end-2016 from $54 billion at end-2015, according to the IMF. Increased spending associated with volatile situation and lower oil prices has fueled a government deficit, which widened to 14 percent of gross domestic product (GDP) in 2016 from 12 percent in 2015 despite ongoing fiscal consolidation.