Business Monitor International projected the Iraqi construction sector to grow by 8.1% annually in real terms between 2013 and 2017, significantly lower than the annual average real growth rate of 22.4% during the 2008-12 period.
It expected the construction sector to grow by 10.39% in real terms this year and by another 8.5% next year, compared to a growth rate of 20.3% last year. It attributed the slower growth rates to the fading effect of favorable statistical base and to the poor business environment. It noted that project delays, false starts, political divisions and deteriorating security condition continue to weigh on the construction sector. It added that project delays reflect the lack of institutional capacity, the absence of coordination between federal and provincial authorities and widespread corruption.
Further, it said that several international oil companies operating in Iraq are planning for large infrastructure projects. But it noted that the current legal framework will keep investment in the sector subdued.
Business Monitor International