Modeling the trend of Iraqi GDP for 1970-2020

Abstract

The study of economic growth indicators is of fundamental importance in estimating the effectiveness of economic development plans, as well as the great role it plays in determining appropriate economic policies in order to optimally use the factors that lead to the dynamics of growth in Iraq, especially during a certain period of time. The gross domestic product (GDP) at current prices), which is considered a part of the national accounts, which is considered as an integrated dynamic of statistics that produces in front of policy makers the possibility of determining whether the economy is witnessing a state of expansion or evaluating economic activity and its efficiency in order to reach the size of the overall economy. The research aims to determine the best and most efficient statistical model to be used in forecasting the GDP in Iraq based on time series data for the period from (1970-2020) years. Where the general trend models (Linear trend, Quadratic trend and Exponential Trend) were applied, and the three models were compared to choose the best model using some statistical criteria, including the Akiaki Information Standard (AIC) and Schwartz Standard (SBS). The results showed that the appropriate model is the Quadratic trend model, were predicting and forecasting values are close to the real values of the GDP series.