Iraq - Mubasher: Fitch Ratings has affirmed its "B-" rating on Iraq, and revised its outlook to "Stable", according to a report issued Monday.
Iraq's fiscal position has improved relatively compared to where it was two years ago, especially in 2015 and the first half of 2016, due to the higher than expected surge in oil prices and reduced government spending.
Fitch forecast that the budget deficit will narrow to 5.1% of the GDP, with higher average oil prices leading to a strong growth in revenue, the report stated, adding that a growth in public expenditure is expected by 12.1%, after three years of substantial spending declines.
“Political risk and insecurity in Iraq are among the highest faced by any sovereign rated by Fitch,” the report stated.
