IMF acknowledges decline in Iraq's inflation rates and positive economic developments

Shafaq News/ The International Monetary Fund (IMF) indicated a "significant decline" in inflation rates in Iraq, which was reflected in the decline in food and energy prices and the stability of the foreign exchange market in Iraq.

According to the Ministry of Finance, an Iraqi delegation headed by Finance Minister Taif Sami concluded its discussions with the IMF's Article IV mission experts in Amman, Jordan, during which many issues were discussed, including the implementation of the economic reform program, the improvements achieved by the Iraqi government in the field of development infrastructure, financial sustainability, and boosting non-oil revenues.

The Ministry's statement quoted the Iraqi delegation as confirming that the IMF "promised to support development programs to advance public financial management, digital transformation, banking, retirement, and customs sectors, and to enhance private sector participation efforts through investment incentives, infrastructure, and reconstruction, indicating its intention to continue discussions and consultations during the Fund's periodic annual meetings."

Furthermore, IMF's mission praised "the strong return of growth in the non-oil sector during 2023, with a noticeable decline in inflation rates, which is reflected in the decline in food and energy prices."

According to the statement, the mission "noted the positive developments in the return of trade financing operations to their normal course and the stability of the foreign exchange market following the implementation of anti-money laundering and anti-terrorist financing controls on cross-border payments."

Notably, the International Monetary Fund's Article IV consultations are bilateral meetings held annually between the IMF group and member states, after which a team of experts meets with the member country and conducts formal consultations with its officials.