Iraq: 2015 Article IV Consultation and Request for Purchase Under the Rapid Financing Instrument - Press Release; Staff Report; and Statement by the Executive Director for Iraq
Publication Date: August 18, 2015
Electronic Access: Free Full text (PDF file size is 2,521KB).
http://www.imf.org/external/pubs/ft/scr/2015/cr15235.pdf
Publication Date: August 18, 2015
Electronic Access: Free Full text (PDF file size is 2,521KB).
http://www.imf.org/external/pubs/ft/scr/2015/cr15235.pdf
Summary: Iraq is facing a double shock arising from the ISIS insurgency and the sharp drop in global oil prices. The conflict is hurting the non-oil economy through destruction of infrastructure and assets, disruptions in trade, and deterioration of investor confidence. The impact of the oil price decline—already felt in 2014—will fully unfold in 2015, affecting the budget, the external sector, and medium-term growth potential. The authorities are responding to the crisis through mix of fiscal adjustment and financing, maintaining their commitment to the exchange rate peg. Rapid Financing Instrument: To help address the present and urgent balance of payment and budget needs triggered by the ISIS insurgency and the collapse in oil prices, the authorities have requested financial assistance under the Rapid Financing Instrument (RFI) for 50 percent of quota (SDR 594.2 million). Outlook and Risks: Assuming a resolution of the conflict in the coming years, the baseline medium-term outlook still looks positive, even though it would be significantly less favorable than at the time of the 2013 Article IV report. Under much improved security conditions, the macroeconomic scenario would continue to be driven by the expansion in oil production and non-oil sector growth, assuming the implementation of structural reform to diversify the economy and support private sector development. But risks remain very high, arising primarily from a worsening of the conflict, political tensions, and poor policy implementation.
Series: Country Report No. 15/235
http://www.imf.org/external/pubs/cat/longres.aspx?sk=43198.0
Series: Country Report No. 15/235
http://www.imf.org/external/pubs/cat/longres.aspx?sk=43198.0