Oil production has backed up the macroeconomic performance of the Iraq. Oil production picks the momentum in 2014 by breaking the record of last 64 years, with the averaged increase in 6.4% in last two years of the total oil production during 2006-2012 (3.1 Million barrels). This is the remarkable increase in the oil production of Iraq.

 

High Economic Growth Rate of Iraq depends upon the higher level of oil production and right allocations of the oil resources to ensure the prosperity for the people of Iraq. Iraq needs more diversification. So any fluctuations in the oil price could not undermine the economic progress towards promoting the living standards of the people, creating the job for the people, and increasing the revenues of Iraq.

 

Hence, economic diversification is a challenge for the government of Iraq, in order to meet the challenges. The government of Iraq has been getting the support of international organizations in setting up the new policies, which could help Iraq to meet its economic challenges. The IMF is helping Iraq a lot in medium term economic reform program. This program will help the Iraq to improve its fiscal sustainability, and this will lead to the economic development for Iraq.

 

2014 expects the good return for the Iraq against its effort to revive its economy. The government makes rapid initiatives in government services, trade and construction. Moreover, investment is set to grow strongly in several oil fields with the arrival of foreign investment. Over the medium term, the key challenge to the economy of Iraq remains to develop its non-oil sector, which could provide higher level of diversifications and better social conditions for the people of Iraq and higher living standards.