The economy of Iraq is 90% dependent on oil production and its sales to international community. The recent oil production of Iraq is 2.6 million barrels per day that they want to increase 7.6 barrels per day by 2017 as per five years economic policy of Iraq. The international circumstances affected a lot and Iraq could not meet its oil targets in 20134 due to decline in the oil prices in the international market.
If Iraq succeeded in achieving 7.6 million barrel target by 2017, it will be par to number one oil producer of the world, Saudi Arabia. Due to decline in the oil production, the inflation rate decreased to 3.1% which is not favorable for economy of Iraq. Even then the economy of Iraq is stable and the economy growth rate is satisfactory according to International Monetary Fund (IMF).
IMF offered $355 million to Iraq to fulfill the deficit in the budget but finance committee of Iraq refused to accept this offer and announced that this deficit will be fulfilled by resource available in the country and no foreign aid will be accepted in this regard. The major reason in the deficit of budget was expected the weak security situation of the country. Iraq is faced 6% deficit in the annual budget. Carlo Sdralevij, the IMF official for Iraq is satisfied with the growth rate of Iraq economy even in the decline of oil prices.
Iraq maintained 4.2% growth rate in 2013 and it was a stable growth rate for the country like Iraq. Iraq consternated on private sector and local industry to avoid dependence on the oil industry and almost succeeded. The non oil sector helped Iraq in maintaining the growth rate to 4.2% in 2013.