ERBIL — Special Representative of the Secretary-General for the UN Assistance Mission for Iraq Jeanine Hennis-Plasschaert has warned of deteriorating economic situation in Iraq, saying the poverty rate in the country is likely to rise to 40%.
“The economy is projected to contract by 9.7 percent in 2020, with poverty rates increasing to approximately 40%,” Plasschaert said on Tuesday while briefing the UN Security Council on the situation in Iraq.
“Considerable losses in labour income are foreseen, as well as a decrease in economic opportunities,” she emphasized.
The UN special representative pointed out that Iraq clearly and repeatedly has been encouraged to build a healthy environment that is conducive to broad-based, fairly distributed growth and employment generation, not in isolation, but with the assistance of the World Bank, the IMF, the United Nations and other partners.
However, she noted, without adequate follow-up, the country will sadly remain ill-prepared to manage these acute shocks.
“Now, it is essential to restate that corruption is perhaps the greatest source of dysfunction in Iraq. It works against the everyday Iraqi woman and man, and it also puts off donors and potential investors who are increasingly fed up with fighting “the system” for a chance to help the country,” Plasschaert added.