United Nations (U.N.) Secretary-General Ban Ki-moon on Thursday told the annual review conference of the International Compact with Iraq that “notable progress” has been achieved in the political, security and economic spheres of the war-torn country. Though the Iraqi people “continue to suffer from acts of terrorism, sectarian violence and criminality…endure forced displacement and human rights violations,” and lack necessary services, Ban said, “there is new hope.” “There is a new hope that the people and Government of Iraq are overcoming daunting challenges and working together to rebuild their country, after years of war, dictatorship and neglect,” Ban told leaders at the meeting, including Iraqi Prime Minister Nour Al-Maliki, in Sweden, where hundreds of thousands displaced Iraqis reside. “If I were asked to use one word to describe the situation in Iraq today, I would choose the word ‘hope,'” Ban said. He added that increased levels of violence in 2006 have retreated to lower levels in early 2007 in Iraq. While Ban said, “Iraq is stepping back from the abyss [the International Compact] feared most…the situation remains fragile.” He emphasized that there must be trust among all Iraqi communities in order for them to facilitate the security apparatus “in an impartial and non-sectarian matter.” Ban commended the Iraqi government for passing the Justice and Reconciliation Law, the Amnesty Law, the Provincial Powers Law and the budget for 2008, but urged them to decide on pending laws such as the draft Electoral Law and Hydrocarbon Law. In the economic sphere, the U.N. chief said the economy had expanded ever since 2007 and “will continue to do so over the next several years.” He also said that oil outputs and exports are “at their highest levels since 2004.” Ban also commended the Iraqi government on ratifying the U.N. Convention on Anti-Corruption, which he said is a “notable step towards strengthening investor confidence.”