Economy Of Iraq

Economy overview Iraq's economy is dominated by the oil sector, which has traditionally provided about 95% of foreign exchange earnings. In the 1980s financial problems caused by massive expenditures in the eight-year war with Iran and damage to oil export facilities by Iran led the government to implement austerity measures, borrow heavily, and later reschedule foreign debt payments; Iraq suffered economic losses from that war of at least $100 billion. After hostilities ended in 1988, oil exports gradually increased with the construction of new pipelines and restoration of damaged facilities. Iraq's seizure of Kuwait in August 1990, subsequent international economic sanctions, and damage from military action by an international coalition beginning in January 1991 drastically reduced economic activity. Although government policies supporting large military and internal security forces and allocating resources to key supporters of the regime have hurt the economy, implementation of the UN's oil-for-food program beginning in December 1996 helped improve conditions for the average Iraqi citizen. Iraq was allowed to export limited amounts of oil in exchange for food, medicine, and some infrastructure spare parts. In December 1999, the UN Security Council authorized Iraq to export under the program as much oil as required to meet humanitarian needs. The drop in GDP in 2001-02 was largely the result of the global economic slowdown and lower oil prices. Per capita food imports increased significantly, while medical supplies and health care services steadily improved. Per capita output and living standards were still well below the pre-1991 level, but any estimates have a wide range of error. The military victory of the US-led coalition in March-April 2003 resulted in the shutdown of much of the central economic administrative structure, but with the loss of a comparatively small amount of capital plant. The rebuilding of oil, electricity, and other production is proceeding steadily at the start of 2004 with foreign support and despite the continuation of severe internal strife. A joint UN and World Bank report released in the fall of 2003 estimated that Iraq's key reconstruction needs through 2007 would cost $55 billion. In October 2003, international donors pledged assistance worth more than $33 billion toward this rebuilding effort.
 
GDP purchasing power parity - $37.92 billion (2004 est.)
 
GDP - real growth rate -21.8% (2004 est.)
 
GDP - per capita purchasing power parity - $1,500 (2004 est.)
 
GDP - composition by sector
agriculture: 6%
industry: 13%
services: 81% (1993 est.)
 
Investment gross fixed  
Population below poverty line NA
 
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
 
Distribution of family income - Gini index  
Inflation rate consumer prices 29.3% (2004 est.)
 
Labor force 7.8 million (2004 est.)
 
Labor force by occupation agriculture NA, industry NA, services NA
 
Unemployment rate NA (2003 est.)
 
Budget
revenues: $12.8 billion NA
expenditures: $13.4 billion NA, including capital expenditures of NA (2004 budget)
 
Public debt  
Agriculture products wheat, barley, rice, vegetables, dates, cotton; cattle, sheep
 
Industries petroleum, chemicals, textiles, construction materials, food processing
 
Industrial production growth rate NA
 
Electricity production 36.01 billion kWh (2001)
 
Electricity production by source
fossil fuel: 98.4%
hydro: 1.6%
other: 0% (2001)
nuclear: 0%
 
Electricity consumption 33.49 billion kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 0 kWh (2001)
 
Oil production 2.2 million bbl/day; note - prewar production was 2.8 million bbl/day (2004 est.)
 
Oil consumption 460,000 bbl/day (2001 est.)
 
Oil exports 1.7 million bbl/day (January 2004)
 
Oil imports NA (2001)
 
Oil proved reserves 113.8 billion bbl (2004)
 
Natural gas production 2.76 billion cu m (2001 est.)
 
Natural gas consumption 2.76 billion cu m (2001 est.)
 
Natural gas exports 0 cu m (2001 est.)
 
Natural gas imports 0 cu m (2001 est.)
 
Natural gas proved reserves 3.149 trillion cu m (2004)
 
Current account balance $1.136 billion (2004 est.)
 
Exports $7.542 billion f.o.b. (2004 est.)
 
Exports commodities crude oil
 
Exports partners US 48.8%, Jordan 8.4%, Canada 8%, Italy 7.9%, Morocco 5.3% (2003)
 
Imports $6.521 billion f.o.b. (2003 est.)
 
Imports commodities food, medicine, manufactures
 
Imports partners Turkey 18.1%, Jordan 13.4%, Vietnam 10.7%, US 6.9%, Germany 5%, UK 4.7% (2003)
 
Reserves of foreign exchange gold  
Debt external $93.95 billion (2004 est.)
 
Economic aid recipient more than $33 billion in foreign aid pledged for 2004-07 (2004)
 
Currency New Iraqi dinar (NID) as of 22 January 2004
 
Currency code NID, IQD prior to 22 January 2004
 
Exchange rates New Iraqi dinars per US dollar - 1,890 (second half, 2003)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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