11-1-12 SWFloridaGuy: The latest SIGR quarterly report to the U.S. Congress promulgates Iraq's positive economic outlook while also touching on certain sectors in Iraq which still require significant improvement to reach international standards.
This report forecasts GDP growth 3x that of the next strongest MENA economy. It also conveys Iraq's need to diversify their economic base, which is very true.
However, we've also seen reported that the global economic crisis is stimulating investment in Iraq and has forced the major powers of the world to enter into Iraq for the purpose of investment opportunities which promotes all economic fields.
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While there is still much need for growth (banking sector, private equity legal framework, economic diversification etc.), Iraq also presents substantial investment opportunities in all economic fields and a gateway to revive the world’s economies. Here is an excerpt from the SIGR report released October 30, 2012, which you can find on page 11.
"The IMF's 2012 World Economic Outlook Report published this quarter revised Iraq's GDP growth forecast upward to a robust 14.7% for 2013. Exactly three times that of the next strongest economy in the Middle East and North Africa region.
The IEA projects that Iraq's oil production will increase to 6.1 MBPD by 2020. Such a level would an average of 200 billion per year to the country."
"Despite the bright picture painted by these new reports, there are issues that could limit the country's economic growth. Iraq's antiquated banking industry development spending required for Iraq to reach its goals.
Further, international bankers voiced concern that the dismissal of CBI Govenor Shabibi could weaken Iraq's financial services industry. The GOI has been unable to broaden Iraq's economic base beyond oil and gas. Income from crude oil continues to account for about 95% of Iraq's foreign exchange earnings."
"Meanwhile, the CoR failed to move forward with the draft legislation that would establish a legal framework for the private equity investments needed to revive state-owned enterprises that exist in other sectors.
Broadening the economy beyond oil and gas is crucial to job creation in a country where unemployment is stuck in the double digits. Although oil accounts for 60% of Iraq's GDP, it provides just 1% of the jobs." LINK