IRAQ: Lebanon conflict hurting economy, experts say

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IRAQ: Lebanon conflict hurting economy, experts say

27 Jul 2006 13:01:22 GMT
Source: IRIN

BAGHDAD, 27 July (IRIN) - Economists say that the current conflict in Lebanon is having a negative impact on the Iraqi economy as most of its trade with Lebanon has been frozen and business with Syria has decreased.

"Lebanon and Syria were Iraqi's most important trading partners," says Muhammad Rushi, an economic analyst and professor at Baghdad University. "Hundreds of contracts had to be cancelled or postponed due to the current violence in Lebanon."

There are no reliable statistics on the volume of trade between those countries but officials say that millions of dollars are exchanged every month in trade that includes medicines, vegetables and grains.

According to Rushi, loss of revenues from cancelled contracts could be disastrous to Iraq's already shaken economy. "Trade with those countries involves a huge number of investors, and even the ministry of Trade in Iraq," Rushi notes.

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