International Credit Rating Agency said Iraqi Economic Policy is Unsatisfactory

Iraqi Dinar 123 News:– The International Rating agency ‘Fitch Ratings’ has started to cover the grouping for Iraq as stable outlook with ‘B-‘category. It is pointed out that most of the issues are at highest level of risk including instability in Iraqi political condition and Iraqi security situation among most of the countries classified by the Fitch Ratings Agency.

It is also said by the experts of Fitch Ratings Agency that expected budget deficit have been increased and doubled for Iraqi budget 2015, it is because of declining global oil prices and increasing expenses for military and security, and a large amount related to the fight against terrorism in the country. Point to be noted that agency rankings covered the Iraqi dependence on goods at initial stage when considered among other highest level countries. Agency further added that Iraqi economic policy is unsatisfactory and this policy is not able to overcome the problem appeared by the fluctuation of global oil prices. Iraq dependant on its oil exports to manage its annual financial budget, which is estimated about 90 percent of its total state revenues. It is the main reason that declining in global oil prices reflected a negative impact on Iraqi economy. Iraq is facing a downfall in its revenue resources for budget 2015 and budget deficit are estimated at more than 100 billion U.S dollars with an increase of 25 percent in next year.

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