According to the study of IMF, due to the rising oil production and robust non-oil activities, Iraq has managed to experience an economic growth of 8% in the year of 2012. They have also forecasted that Iraq’s economy will grow at a rate of 9% by 2013, due to country’s expansion in oil production, from 2.8 mbpd to 3.3 mbpd in the year of 2013.
6 percent was the inflation rate in Iraq by last year, which is like to decrease by the end of this year as predicted by IMF. CBI reserves reached US$70 billion at the end of 2012, on the basis of oil production in the country. At the same time, Development Fund for Iraq (DFI) reached US$18 billion.
Revealing these positive data about Iraq, IMF also explained that Iraq should go for more free market economy to support private firms and no-oil based businesses. At the same time, profound public financial management is required. According to a statement by IMF, “continues to suffer from severe structural weaknesses such as a small non-oil sector, high unemployment, public sector dominance, and a weak business environment.”
For the development of non-oil sector, government should opt for a long term vision or plan. Growth in service sector would definitely solve the major issues in the country, like – unemployment, low standard of living, etc.