On Wednesday, the Iraqi Minister of Planning, Dr. Nouri Sabah al-Dulaimi has signed an MOU (memorandum of understanding) on behalf of the Iraqi government with the World Bank. The new MOU will support the efforts to restore stability and reconstruction in the Iraqi liberated areas, signed by the World Bank Director of Sarig Kumar Jah. The ministry of planning issued a statement that the signed MOU will contribute to support and increase the quality of infrastructure projects funded by the Iraq Recovery and Reconstruction Fund. It is administered jointly by the World Bank and Iraqi Ministry of Planning. Al-Dulaimi also admired all the efforts made by the international community to support sustainable development in Iraq.
The Director of the Department of Mashreq in the World Bank also praised the efforts of Iraqi Minister of Planning for providing the appropriate conditions to achieve this support, which is part of the outputs of the Kuwait Conference of donors. He stressed not to save any effort contributes to the stabilization and reconstruction of Iraq. The World Bank expects the economy of Iraq will recover significantly during the coming period. The Bank also predicted the growth of the Iraqi economy by 2.8% during the current year. A report from the bank pointed out its expectation to the new government in Iraq, compared with a rate of 0.6% in 2018.
The agreement on the reconstruction of Iraq will provide a powerful boost to the Iraqi economy. The outlook for the economic performance of oil importing countries in the region is closely related to developments in oil-rich neighboring countries, especially in the GCC countries. The recovery of oil-exporting countries is connected to empower capital flows, foreign direct investment, and cash transfers to neighboring oil importing countries. The experts in the World Bank said that downfall in economic growth in the U.S, China, and the European Union could adversely affect economic growth in the region.