The International Monetary Fund (IMF) said on Tuesday that economic growth in Iraq and other oil countries will reach 0.9% next year, warning at the same time of fluctuations in oil prices.
"The economy of the Gulf region in general will return to growth in 2018 after shrinking in some of its countries, but it remains vulnerable to fluctuations in oil prices," the IMF said in a report released today. "The rise in oil prices after the significant decline until 2016 will allow the Gulf economy Growth of 2.4% this year and 3% in 2019, after shrinking by 0.4% in 2017.
With the oil market unstable and volatile, the IMF warned that "the growth prospects of the oil-exporting countries are affected by serious doubts about the course of oil prices in the future."
"Growth in the oil countries in the region outside the Gulf, namely Iraq, Iran, Algeria and Libya, is expected to reach 0.3 percent in 2018, after reaching 3 percent the previous year, before rising to 0.9 percent in 2019.
"This is a significant reflection of the re-imposition of US sanctions on Iran, which will likely reduce Iran's production and exports over the next two years," he said, predicting Iran's economy will shrink by 1.6 percent this year and 3.6 percent next year.
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"The economy of the Gulf region in general will return to growth in 2018 after shrinking in some of its countries, but it remains vulnerable to fluctuations in oil prices," the IMF said in a report released today. "The rise in oil prices after the significant decline until 2016 will allow the Gulf economy Growth of 2.4% this year and 3% in 2019, after shrinking by 0.4% in 2017.
With the oil market unstable and volatile, the IMF warned that "the growth prospects of the oil-exporting countries are affected by serious doubts about the course of oil prices in the future."
"Growth in the oil countries in the region outside the Gulf, namely Iraq, Iran, Algeria and Libya, is expected to reach 0.3 percent in 2018, after reaching 3 percent the previous year, before rising to 0.9 percent in 2019.
"This is a significant reflection of the re-imposition of US sanctions on Iran, which will likely reduce Iran's production and exports over the next two years," he said, predicting Iran's economy will shrink by 1.6 percent this year and 3.6 percent next year.
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