IS territory shrinks by 12 percent in first half of 2016

Territory controlled by the Islamic State extremist group shrunk by 12 percent in the first six months of 2016, according to an analysis released by the research group IHS on Sunday.

The analysis said that "in 2015, the Islamic State's caliphate shrunk by 12,800 square kilometers to 78,000 square kilometers, a net loss of 14 percent."

"In the first six months of 2016, that territory shrunk again by 12 percent. As of July 4, 2016, the Islamic State controls roughly 68,300 square kilometers in Iraq and Syria," it said.

IHS senior analyst Columb Strack said the losses were likely to mean the IS would redouble its attempts at "mass casualty attacks."

"As the Islamic State's caliphate shrinks and it becomes increasingly clear that its governance project is failing, the group is reprioritizing insurgency," he said.

"As a result, we unfortunately expect an increase in mass casualty attacks and sabotage of economic infrastructure, across Iraq and Syria, and further afield, including Europe," he added.

The group's revenue also dropped from 80 million U.S. dollars a month in mid-2015 to 56 million dollars a month by March 2016, according to IHS.

"This figure has probably continued to decrease since March by at least another 35 percent," said another senior analyst at IHS Ludovico Carlino.

"Combined with the military setbacks on the ground, this is having an impact on the internal cohesion of the group as indicated by a marked increase in defections and desertions since January 2016," he said.

IHS is headquartered in Englewood, Colorado, the United States, and employs about 9,000 people in 33 countries around the world. Endi