IMF: Iraq’s Gross Domestic Product Last Year’s Record Comparable to What the U.S. Economy
May 27,2011
According to estimates of the International Monetary Fund that the total GDP in Iraq rose by 2.6 percent during the past year, Which is close to the record of the U.S. economy for the same period. UNFPA had projected an increase of 11 percent this year and next year but predicted an expansion to six or seven times over the next decade with the rise in oil production is equivalent to the production of Saudi Arabia.
In the meantime, the Central Agency for Statistics recently high rates of inflation during the last April and experts felt in the economy that the disorder is caused by the absence of the correct economic policy and sound add to the economy’s dependence on oil, the base class.
The absence of clear economic policy
«What rate of inflation continues to be increasing with the passage of time in the absence of effective government handlers working to reduce it or stop it to ensure stability in the market.
Statement issued by the Central Bureau of Statistics confirmed the increase in the inflation rate in April by 0.8% compared to the previous month and by 5.8% compared to April of 2010.
He attributed the economic researcher Salim Hamid continued high inflation, the lack of clear economic policy which is still oil is the main source of money at the expense of other sectors of industrial, agricultural and other, as well as the inability of local product compete with imported product and the continued migration of Iraqi funds abroad.
Hamid believes that the allocation of the bulk of the state budget for operational and non-activation of the investment side one of the reasons for the continuing high inflation.
In contrast, played down the economic expert, Abdullah al-Bandar from the seriousness of the statement of the Central Bureau of Statistics in regard to the high rate of inflation compared to last year where he found a small percentage due to climatic reasons or for shortage in one of the consumables which led to higher prices.
Bandar praised the monetary policy of the Iraqi Central Bank to control liquidity in the Iraqi market.
The Central Bureau of Statistics said in a recent report inflation for the month of April, which was prepared on the basis of field data collection »on the prices of goods and services components of the consumer basket from a selected sample of outlets in all governorates of Iraq, where the results showed that the department of food and non-alcoholic beverages where the prices of this section increased by 3.9% compared to prices to the month of April 2010.
The division recorded alcoholic beverages and tobacco increased during the month of April by 1.1% compared to the previous month and the prices of this section increased by 3.2% compared to prices to in April of 2010.
And register the clothing and footwear increased during the month of April by 1.9% compared to the previous month, as prices of this section increased by 2.4% compared to April of 2010.
The Department of Housing has seen prices rise during the month of April by 0.9% compared to the previous month because of the high rents of residential buildings increased by 9.5%, as well as higher prices for electricity paid by the application of new rates reaching 100% rise.
And register the household furnishings and equipment rose slightly during April by 0.2% compared to the previous month as prices of this section increased by 1.3% compared to prices to the month of April 2010. Department of Health also recorded a rise in prices in Iraq by 1.3% and also increased by 10.0% compared to prices to the month of April 2010.
Prices and stable communications department during the month of April also recorded a decline of 8.7% compared to prices in April of 2010.
Many problems of the economy
To highlight more on the crisis of the Iraqi economy met with Radio Free Iraq is Professor of Economics at the University of Mustansiriya Abd al-Rahman al-Mashhadani, who first started asking the most important problems of this economy, including the structural imbalance in the production sectors including agriculture and industry due to total reliance on oil, almost note that
This sector is affected by world prices rise or fall.
The second problem posed by al-Mashhadani is widespread unemployment and questioned the expert at the official rate declared and a 15 percent saying it was much higher.
The expert also pointed to international reports pointed to the spread of poverty in Iraq and that more than a million Iraqi children under the age of 14 years are forced to be absent from school and engage in work because of the need.
Al-Mashhadani, also referred to the conflicting figures issued by the Central Bank with those issued by the Central Bureau of Statistics on inflation, saying that these figures do not depend on year basis but on the figures for previous months only.
Al-Mashhadani, attributed the high rates of inflation to the shortage of fuel, leading to high cost agricultural and industrial production in general, especially with preventing the importation of agricultural products from abroad.
Al-Mashhadani, also spoke about government policies and weak instability which affects the economic conditions in general, referring specifically to the Customs Tariff Act, which was announced last March and has been canceled. The expert said that the law in the case led to high prices by 25 percent figure did not decline following the abolition of work.
Al-Mashhadani, also noted that the growth rates that are calculated in Iraq is inaccurate because it depends on the prices of material oil and height and not on the indicators of real growth, and said that the solution was and still is the following: put the right policies for the conduct of the economy, depends on the creation of real jobs and lay the foundations for genuine development .
(Source)
May 27,2011
According to estimates of the International Monetary Fund that the total GDP in Iraq rose by 2.6 percent during the past year, Which is close to the record of the U.S. economy for the same period. UNFPA had projected an increase of 11 percent this year and next year but predicted an expansion to six or seven times over the next decade with the rise in oil production is equivalent to the production of Saudi Arabia.
In the meantime, the Central Agency for Statistics recently high rates of inflation during the last April and experts felt in the economy that the disorder is caused by the absence of the correct economic policy and sound add to the economy’s dependence on oil, the base class.
The absence of clear economic policy
«What rate of inflation continues to be increasing with the passage of time in the absence of effective government handlers working to reduce it or stop it to ensure stability in the market.
Statement issued by the Central Bureau of Statistics confirmed the increase in the inflation rate in April by 0.8% compared to the previous month and by 5.8% compared to April of 2010.
He attributed the economic researcher Salim Hamid continued high inflation, the lack of clear economic policy which is still oil is the main source of money at the expense of other sectors of industrial, agricultural and other, as well as the inability of local product compete with imported product and the continued migration of Iraqi funds abroad.
Hamid believes that the allocation of the bulk of the state budget for operational and non-activation of the investment side one of the reasons for the continuing high inflation.
In contrast, played down the economic expert, Abdullah al-Bandar from the seriousness of the statement of the Central Bureau of Statistics in regard to the high rate of inflation compared to last year where he found a small percentage due to climatic reasons or for shortage in one of the consumables which led to higher prices.
Bandar praised the monetary policy of the Iraqi Central Bank to control liquidity in the Iraqi market.
The Central Bureau of Statistics said in a recent report inflation for the month of April, which was prepared on the basis of field data collection »on the prices of goods and services components of the consumer basket from a selected sample of outlets in all governorates of Iraq, where the results showed that the department of food and non-alcoholic beverages where the prices of this section increased by 3.9% compared to prices to the month of April 2010.
The division recorded alcoholic beverages and tobacco increased during the month of April by 1.1% compared to the previous month and the prices of this section increased by 3.2% compared to prices to in April of 2010.
And register the clothing and footwear increased during the month of April by 1.9% compared to the previous month, as prices of this section increased by 2.4% compared to April of 2010.
The Department of Housing has seen prices rise during the month of April by 0.9% compared to the previous month because of the high rents of residential buildings increased by 9.5%, as well as higher prices for electricity paid by the application of new rates reaching 100% rise.
And register the household furnishings and equipment rose slightly during April by 0.2% compared to the previous month as prices of this section increased by 1.3% compared to prices to the month of April 2010. Department of Health also recorded a rise in prices in Iraq by 1.3% and also increased by 10.0% compared to prices to the month of April 2010.
Prices and stable communications department during the month of April also recorded a decline of 8.7% compared to prices in April of 2010.
Many problems of the economy
To highlight more on the crisis of the Iraqi economy met with Radio Free Iraq is Professor of Economics at the University of Mustansiriya Abd al-Rahman al-Mashhadani, who first started asking the most important problems of this economy, including the structural imbalance in the production sectors including agriculture and industry due to total reliance on oil, almost note that
This sector is affected by world prices rise or fall.
The second problem posed by al-Mashhadani is widespread unemployment and questioned the expert at the official rate declared and a 15 percent saying it was much higher.
The expert also pointed to international reports pointed to the spread of poverty in Iraq and that more than a million Iraqi children under the age of 14 years are forced to be absent from school and engage in work because of the need.
Al-Mashhadani, also referred to the conflicting figures issued by the Central Bank with those issued by the Central Bureau of Statistics on inflation, saying that these figures do not depend on year basis but on the figures for previous months only.
Al-Mashhadani, attributed the high rates of inflation to the shortage of fuel, leading to high cost agricultural and industrial production in general, especially with preventing the importation of agricultural products from abroad.
Al-Mashhadani, also spoke about government policies and weak instability which affects the economic conditions in general, referring specifically to the Customs Tariff Act, which was announced last March and has been canceled. The expert said that the law in the case led to high prices by 25 percent figure did not decline following the abolition of work.
Al-Mashhadani, also noted that the growth rates that are calculated in Iraq is inaccurate because it depends on the prices of material oil and height and not on the indicators of real growth, and said that the solution was and still is the following: put the right policies for the conduct of the economy, depends on the creation of real jobs and lay the foundations for genuine development .
(Source)