Iraq economy to shrink 0.5% in 2014: IMF

(MENAFN- Khaleej Times)  Iraq's oil-dominated economy is expected to shrink 0.5 per cent this year, the International Monetary Fund said, a significantly smaller contraction than the 2.7 per cent fall it forecast two months ago.

The IMF attributed the drop in output to the Islamic State insurgency in the north and west of the country, but its latest estimate appeared to be based on higher figures for the country's oil production and exports.

Oil production should reach 3.3 million barrels per day (bpd) in 2014, up from 3.1 million bpd in 2013, with exports remaining at 2013 levels of 2.5 million bpd, the fund said in a statement after talks with Iraqi officials.