Iran-Iraq Chamber forecasts $20b export growth to Iraq in H2
Iran expects its exports to Iraq to reach $20 billion in the second half of the current Persian Calendar year (started on March 21) despite a slight decline in the first five months, the head of the Iran-Iraq Joint Chamber of Commerce said on Tuesday.
Speaking at a meeting of business leaders involved in Iraq trade, Yahya Al-e-Es’haq pointed to the slight decrease over the first five months, noting that the largest drop pertained to gas exports. “In the second half of the year, the numbers will change, and we hope our exports will reach $20 billion,” he said, ISNA reported.
The meeting, held on Tuesday, gathered representatives from the Trade Promotion Organization, Iran Customs Administration, the Ministry of Foreign Affairs, the headquarters for developing Iran-Iraq economic relations, and Iraqi businesspeople to review trade conditions, assess risks and obstacles, and form a special measures management committee at the Iran-Iraq Joint Chamber of Commerce.
Meanwhile, Abdolamir Rabihavi, director-general of the West Asia Office at the TPO, presented the latest trade data for the first five months of the year, saying that 53% of exported goods to Iraq were raw materials.
Rabihavi noted that Iran’s exports to Iraq have been declining since April, although part of the decrease has been offset, and the decline currently stands at 18%. He said the drop in exports of gas and rebar was primarily responsible for the fall.
“Iran’s gas exports to Iraq in the first five months of last year totaled $1.6 billion, whereas this year, the figure has decreased by $650 million to $950 million,” he said.
He added that rebar exports to Iraq have also seen a significant drop, decreasing by $174 million in the first five months of this year, compared to the corresponding period last year.
Overall, Iran’s exports have declined by around $1 billion compared to the first five months of last year, according to Rabihavi.
“In the same period last year, we exported around $4.6 billion to Iraq, whereas in the first five months of this year, due to prevailing domestic conditions, exports amounted to $3.749 billion,” he said.