Iraqi economists: Violent environment reasons for the deterioration of economy, GDP, and rising inflation

Posted: August 1, 2013 in Iraqi Dinar/Politics
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30/07/2013

Confirmed economists and specialists Iraqis, said Tuesday that violence and political disagreements continued in the country are “environmentally repulsive” for domestic investment and foreign alike, while Benoit that the orientation of consumer growing in the country under the direction of internal and external forces, and “the greed of parasites” of traders , led to a monopoly and a significant rise in prices internally despite the decline globally, some of whom felt that would solve the electricity crisis that contribute to an increase in domestic production and reduce inflation.

Expert: violence and political differences factors restrain investment
The economist believes that “the continuing violence and political differences factors restrain domestic investment and reduce the chances of the coming of the foreign investor to Iraq.

He says economic expert on behalf of Antoine, in an interview to the (Presse term), “The recovery of the economy requires a safe environment militarily and politically because of violence and political differences factors restrain domestic investment and reduce the chances of the coming of the foreign investor to Iraq.”

He adds Antoine, “The bombings repeated in Iraq, it is necessary to limit the activity of investors and affect commercial traffic by about a year, especially as the transport sector and killings suffered by truckers affect trading of goods and services and the commercial reality as well as the movement banking, and therefore the standard of living especially for simple layers. ”

The economist expects that “the continuation of this violence, if it continues for a long time, to leave the country to the Iraqi investor abroad,” and shows that “the result leads to the fear of foreign investors from coming to Iraq and look for other opportunities outside.”

Iraq has seen since the beginning of February 2013, a surge in violence, as reported the United Nations Mission in Iraq (UNAMI), in the first of June, 2013, to May last year, witnessed the death or injury of 3442 Iraqi operations of violence in different parts of the country, while showed (UNAMI), the beginning of July of this, that the outcome of violence in Iraq during last June reached about 2532 people, and stressed that Baghdad was the “most vulnerable” to acts of violence.

Professor of Economics: the consumer economy and the greed of the merchants led to monopoly and high rabies
In turn, believes Professor of Economics at the University of Baghdad, that “Iraq is heading toward the consumer economy by encouraging large internal and external forces,” and asserts that “greed merchants parasites led to a significant increase in house prices despite the decline in the world.”

He says Majid picture, in an interview to (range Press), “The political turmoil or security in any country in the world adversely affect the economy in and the results of the business about a year whether commercial or economic or service,” and shows that “If we add to that financial corruption and administrative and non-consensus on the methodology of work and the identity of the state and economic direction, it must be a very big impact on the Iraqi economy. ”

He mentions the picture, that “the trend towards consumption has led to the monopoly of commercial activity in Iraq, and the preference of the private sector business to industrial or agricultural,” is that “it has been greatly encouraged by the forces of various internal and external.”

He continues, professor of economics at the University of Baghdad, that “as long as Iraq depends on the insurance needs through trade, and financial resources by exporting oil, there are internal and external factors affecting the level of prices,” the bridge “but the issue is the basis for the high internal price is the monopoly of commercial activity for the majority of Economic activity in Iraq. ”

He sees the picture, that “greed merchants parasites and feverish quest to increase their profits by all ways and means, legitimate or illegitimate, has led to a significant increase in internal price despite the decline in the world.”

The agricultural sector in Iraq has not received attention successive Iraqi governments, despite the existence of factors encouraging human and climatic, financial and technical, has led this neglect to the deterioration of the level of local agricultural production, and Iraq’s transition from an agricultural country producer and exporter, to the country of the consumer and importer of agricultural products of the various from neighboring countries.
He was interested in the agricultural sector, Benoit in, (15 April 2013), that the agricultural situation needs to “development and promotion of new,” and called on the government to “provide real support to farmers and not just Ads,” and to facilitate the procedures for granting agricultural loans, “and stressed that Import vegetables contribute to “the demolition of Iraq’s agricultural economy.”

Dealer: expelling violent environment for investment
To see the head of the Baghdad Chamber of Commerce earlier, that “violence became طاردا of national investment in general and him in particular, because the environment lead to the escape of violent investors.”
He says Falah Commune, in an interview to the (long-Presse), if any “economic process does not without a national investment and foreign,” and asserts that “except for oil licensing rounds there is a scarcity of investing in Iraq because the environment is safe and will remain the case for what it is as long as no improve the conditions of security. ”

Financial expert: Violence destroys Iraqi psyche and economy
In a related development, confirms the Chairman of the Securities Commission, that “the ongoing violence in Iraq does not destroy the economy, but also psychological and his sons as well.”

He says Abdul-Razzaq al-Saadi, said in an interview to the (Presse term), “The violence in Iraq destroyed the Iraqi psyche, as also destroys the national economy”, and calls on all Iraqis to “solidarity in order to combat terrorism because it affects their lives in the heart.”
Saadi adds, that “the stock market is one of the important projects in Iraq, where he expanded the areas of investment, especially foreign,” and reduce “the impact of terrorism and violence on the Iraqi economy now or in the future.”

The head of the Securities Commission, that “the Iraqi Central Bank stepping thoughtful about to reduce inflation rates in the country,” is that “the electricity crisis is one of the causes of inflation in Iraq because they affect the operation of the production sector.”

Iraq has suffered a shortage of electricity since the beginning of 1990, and increased hours of rationing electricity after the year 2003, in Baghdad and the provinces, because made a lot of stations, as well as sabotage attacks on facilities over the past years, with increased hours of power cuts for citizens to about twenty hours per day.

Shows Saadi, that it “is currently not possible to give indications on the rate of inflation in the Iraqi market, especially in Ramadan, because it creates an exceptional situation under which the business abound expenses,” and adds that “some savers in the financial markets resort to selling some of their savings to avoid the expenses of the feast, which gives the indicators can not be adopted as a measure. ”

The IMF (International Monetary Fund; IMF), has reported in its annual report on Iraq in 2013, which he published in (the 24 of July 2013 now), and seen by (the long-Presse), that Iraq is facing the challenges of fiscal policy great after 30 years on sanctions and wars caused by the presence of very large needs of the country at the social level and the development of infrastructure, and saw that Iraq needs to convert its oil wealth into assets based upon the operations of reconstruction and development continuously.

Point the International Monetary Fund in its report, that the economic growth of Iraq has witnessed an acceleration from 5.9 percent in 2010 to more than 8.4 percent in the year 2012 the past, when the average oil production of three million barrels per day, the highest level has been achieved during the last thirty years.

According to the Fund in its report, that experts expect to increase growth in Iraq in the year 2013 the current nine percent with increasing oil production to about 3.3 million barrels per day, and the recovery of activity in the non-oil sectors (government services, trade, real estate, construction and transportation). The report also pointed to a decline in the inflation rate of six percent at the end of 2011 to 3.6 percent in the past the end of 2012, but is expected to increase slightly in the current year 2013.

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