Boston, MA -- (SBWIRE) -- 06/06/2014 -- We are maintaining our real growth forecasts for Iraq's construction industry for 2014 at 9.6% year-on-year. Violence in Anbar province and the political turmoil it is causing, in addition to a continued rift between Baghdad and Kurdistan which may delay the next financial year's budget, will act as major drags on growth. That said, Iraq's construction industry has great potential in light of its vast oil reserves and having the fastest growing economy in the Middle East and North Africa. Over our forecast period the oil sector will be a major source of investment into infrastructure, supporting our long-term outlook of 7.2% average real growth over our 10-year forecast period.

Away from the institutional and security risks which will subdue growth in Iraq's construction sector, there are a number of factors which support our view for average year-on-year (y-o-y) growth of 7.2% over the 2014-2023 period. Both the 2013/14 and 2014/15 national budgets have been expansionary, with investment expenditure set to make up the majority of spending; infrastructure and housing accounting for the largest share. While there were delays in passing the previous budget and the most recent budget does not have the approval of the Kurdish, investment in infrastructure is a government priority.

View Full Report Details and Table of Contents

Endemic problems such as corruption, a lack of institutional capacity and poor technical ability severely dent growth. To address these endemic problems the Ministry of Finance and the Ministry of Planning are looking to tackle the issue of low execution rates by making those with a rate of less than 25.0% liable for questioning by the parliament and the council of ministries. While such moves are encouraging for the construction sector, we believe the government's lack of control over local agencies and bureaucratic bottlenecks will impede the progress of development projects during the forecast period.

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Construction research reports at Fast Market Research

You may also be interested in these related reports:

- Indonesia Infrastructure Report Q3 2014
- Romania Infrastructure Report Q3 2014
- Singapore Infrastructure Report Q3 2014
- South Korea Infrastructure Report Q3 2014
- Argentina Infrastructure Report Q3 2014
- Poland Infrastructure Report Q3 2014
- Iran Infrastructure Report Q3 2014
- Saudi Arabia Infrastructure Report Q3 2014
- Australia Infrastructure Report Q3 2014
- Vietnam Infrastructure Report Q3 2014