## IMF Staff Concludes Virtual Visit to Iraq

_IMF News, December 3, 2021_

## Source details

**Canonical URL:** [IMF Staff Concludes Virtual Visit to Iraq](https://www.imf.org/en/news/articles/2021/12/03/pr21357-iraq-imf-staff-concludes-virtual-staff-visit)

## Other formats

- [Markdown version](/en/news/articles/2021/12/03/pr21357-iraq-imf-staff-concludes-virtual-staff-visit/index.md)
- [Structured JSON version](/en/news/articles/2021/12/03/pr21357-iraq-imf-staff-concludes-virtual-staff-visit/index.json)
- [Bundle manifest](/en/news/articles/2021/12/03/pr21357-iraq-imf-staff-concludes-virtual-staff-visit/bundle-manifest.json)

## Bibliographic details
- Published: December 3, 2021

---

### Mission and context
- Staff team led by Tokhir Mirzoev held a virtual mission with the Iraqi authorities during November 28 - December 2.
- End-of-Mission press releases convey preliminary findings and the views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
- Press Release No. 21/357.

### Key economic findings
- The economy is recovering from last year’s sharp contraction, helped by higher oil prices and easing of the containment measures.
- Real non-oil GDP is expected to rebound by 12 percent in 2021.
- Oil output is projected to gradually increase in line with the OPEC+ agreements.
- Inflation has reached 7.2 percent in September.
- The fiscal and external current account balances are expected to improve significantly in 2021 from double-digit deficits in 2020, mainly due to higher oil prices.
- Recent weeks saw a significant decline in new COVID-19 infections and a gradual improvement in the vaccination rate.

### Projections and risks
- Recovery is expected to continue in the medium term.
- Considerable downside risks remain, most notably related to the oil market volatility and the COVID-19 pandemic.

### Policy priorities and recommendations
- Strengthen public finances while creating fiscal space for investment and social safety nets.
- Civil service reform aimed at increasing public sector efficiency and containing the wage bill.
- Reduce inefficient energy subsidies.
- Diversify fiscal revenues.
- Stem losses in the electricity sector.
- Strengthen governance.
- Improve the coverage and targeting of social assistance to better protect the most vulnerable.
- Restructure large state-owned banks and strengthen their governance to revitalize the financial sector and ensure private sector access to finance.

### IMF support and closing
- Higher oil revenues present an opportunity to tackle Iraq’s significant underlying vulnerabilities, strengthen resilience, and advance key socio-economic priorities.
- The IMF stands ready to support Iraq toward these ends.
- The IMF staff team thanked the authorities for candid and productive discussions during the mission.

*IMF Communications Department — Press Release No. 21/357, December 3, 2021*

---


## References

- [Iraq and the IMF](http://www.imf.org/external/country/IRQ/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2021/12/03/pr21357-iraq-imf-staff-concludes-virtual-staff-visit_