Joint statement of the Economic Contact Group for Iraq
The Iraq Economic Contact Group (IECG) met today with Iraqi officials in Washington DC. Representatives from Iraq, the World Bank, the International Monetary Fund (IMF) and the G7 discussed Iraq’s economic challenges and opportunities and the need for significant economic reform.
Despite some progress made under the current government in a difficult environment, Iraq continues to face daunting medium- and long-term economic challenges that are compounded by the negative impacts of climate change – including water scarcity, desertification , drought and soaring temperatures. The IECG encourages the Iraqi government to advance an ambitious economic reform agenda and to take decisive climate action.
Iraq’s economic reform and recovery, the consolidation of its democracy and the increased participation of women and girls in all aspects of the country’s economic and political life are all essential to promote stability not only in Iraq but also in the region.
Diversifying the economy and creating an inclusive and vibrant private sector to complement the hydrocarbon industry will foster macroeconomic resilience and provide opportunities and livelihoods for the Iraqi people. This will require reforms that improve the business environment, modernize the financial sector, strengthen macroeconomic stability and public finance management, and fight corruption; catalyze growth and create the foundations for the private sector to thrive.
Investing Iraq’s oil revenues prudently – through good governance, effective fiscal management, and transparency – will be important to rebuilding and protecting climate infrastructure and improving basic services, thereby laying the foundations for sustainable growth.
The IECG remains committed to supporting the Iraqi government in addressing Iraq’s significant economic and social challenges.