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The IMF said in a statement on 25 March at the conclusion of discussions with Iraqi officials in ‘Amman that while Iraq had managed to maintain macro-economic stability in 2013, lower-than-expected oil export revenues and higher than budgeted spending had led to a rise in the deficit to 6% of GDP.
The deficit was financed through the DFI, which declined from over $18bn to $6.5bn over the course of the year, the IMF’s Mission Chief for Iraq, Carlo Sdralevich says in the statement.
“Economic activity is set to strengthen in 2014, with GDP growth rising to over 6% thanks to oil production of 3.2mn b/d and oil exports of 2.6mn b/d, even though non-oil activity is affected by the security situation,” he adds. Whilst these figures are well up on official figures of 2.98mn b/d production and 2.39mn b/d exports for 2013, they are well short of Iraq’s official 3.4mn b/d 2014 export target (3mn b/d from federally-controlled fields and 400,000 b/d to be supplied by the KRG)—see chart. (CONTINUED - 280 WORDS)