Written question asked by Andrew George (Liberal Democrat) on Tuesday, 17 January 2006, in the House of Commons. It was due for an answer on Thursday, 19 January 2006. It was answered by Hilary Benn (Labour) on Wednesday, 25 January 2006 on behalf of the Department for International Development.

Iraq

Question: To ask the Secretary of State for International Development what the economic growth rate has been in Iraq in each of the past four years.

Answer: Under Saddam Hussein's regime between 2001 and 2003, the economy shrank at an average rate of 9 per cent. per annum. After the 2003 conflict the economy recovered, with an initial economic growth rate of 46 per cent. in 2004. In 2005, the Iraqi authorities were successful in promoting macroeconomic stability despite the extremely difficult security environment, and economic growth was a modest 2.6 per cent. These are estimates which the International Monetary Fund (IMF) has accepted, but it acknowledges the data quality as poor. In 2006, the IMF predicts an increase in economic growth to 10 per cent., a reduction in inflation, and an increase in net international reserves, advancing Iraq's transition towards a market economy.

Secondary information