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Fitch: Iraq’s Fiscal Outperformance May Not Last

By John Lee.

Fitch Ratings has said that Iraq’s government debt is set to fall steeply as a share of GDP in 2022, bringing it to pre-Covid-19 pandemic levels.

It adds that while this is positive for the sovereign’s creditworthiness, the decline may not be sustainable, as it partly reflects political tensions that have constrained public spending and reflect the high political risk captured in Iraq’s ‘B-‘ rating.

More here.

(Source: Fitch Ratings)

The post Fitch: Iraq’s Fiscal Outperformance May Not Last first appeared on Iraq Business News.

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Iraq’s GDP to Grow 4.1%

By John Lee.

GDP growth in Iraq is expected to hit 4.1 percent in 2019, up from 2.8 percent this year, acccording to data from Moody’s.

The gain is based on an expectation of oil prices averaging $75 per barrel, and would be the highest level since 2016’s 13.1 percent expansion.

The National quotes the report as saying:

“Higher oil prices and output, as well as an expected increase in investment spending because of the improved security situation, have bolstered Iraq’s economic outlook … However, oil price volatility and potential further social unrest that could weaken Iraq’s economic infrastructure, as well as Iraq’s vulnerability to environmental risks, exacerbated by outdated infrastructure are continued risks to growth.”

More here

[In April, Fitch predicted 4.5 percent growth for 2019. – Ed.]

(Source: The National)