Iraq’s economy grew by 1.4% last year, signaling slight recovery from a 2.9% downturn. Iran’s economic growth stood at 3.7%. The growth is driven by increased oil production and non-oil sectors. However, it remains insufficient to reduce unemployment and improve living standards, necessitating stronger growth for long-term stability.
Iraq’s economy has seen a growth of 1.4% during the previous Iranian year, as indicated by the economic statistics published by Iran’s Central Bank. This figure reflects the performance for the first nine months of the Iranian year that concluded recently. In comparison, Iran’s economy demonstrated a more substantial growth rate of 3.7%, which has been regarded as stable and reasonable when assessed against both regional and global benchmarks.
The report further highlights that Iran’s fixed capital formation experienced an increase of 3.4%. Additionally, the non-oil trade value surpassed $116 billion, achieving an impressive rise of 11.2%. In the proposed statistics, Turkey’s economy grew by 2.8%, Pakistan’s by 2.5%, and Iraq, along with Saudi Arabia, by 1.4%. In aggregate, the Middle East and Central Asia recorded an overall growth rate of 2.4%.
Iraq’s economic growth is viewed as a slight recovery following a significant contraction of 2.9% in 2023, as per the International Monetary Fund (IMF). This rebound is attributed to a gradual uptick in oil production and exports, which have benefited from more stable global oil pricing.
Moreover, the World Bank has pointed out that non-oil sectors—namely agriculture, construction, and services—are instrumental in Iraq’s economic expansion. However, they also emphasized that the momentum of this growth is inadequate for alleviating unemployment or enhancing living standards. Both the IMF and World Bank have urged that Iraq needs sustained and vigorous growth to confront structural issues and achieve long-term economic stability.
In summary, Iraq’s economy has experienced a modest recovery with a growth rate of 1.4%, attributed mainly to the revival of oil production and more stable global oil prices. Despite this positive news, the IMF and World Bank caution that the current growth levels are insufficient to address unemployment or improve living standards, highlighting the need for more substantial and sustained economic development to ensure future stability.
Original Source: shafaq.com
