Growth [and death] on the up in Iraq

lawksalih: Iraq is expected to achieve 10% of economic growth in 2006, Iraq's central bank governor, Sinan Al-Shibibi, announced during a press conference in Baghdad.

"Average inflation will decrease to 15% and net foreign currency reserves will grow by around $8.7 billion," Shibili said according to a report published on Thursday by the London-based Al Hayat daily.

Estimates put Iraq's economic growth this year at 2.6%.

The governor added that the Iraq's budget deficit is expected to decrease to 8% of gross national product (GDP) in the next fiscal year down from 11% in 2005.

"We are working to eliminate the budget deficit in the next few years," Shibibi said.

Shibibi also confirmed that the executive board of the International Monetary Fund (IMF) approved a stand-by financing arrangement designed to support the country's economic program for 2006.

The IMF arrangement, for an amount of about $685 million, should allow Iraqi authorities over the next 15 months to improve governance structures, expand the oil sector, and direct resources away from subsidies, said an IMF press release on December 23. Read more

db: Sensing a disconnect here ...