Iraq flag

The Economy of Iraq

Iraqi Economy

Iraq's map

Economy - overview: Decreasing insurgent attacks and an improving security environment in many parts of the country are helping to spur economic activity. Iraq's economy is dominated by the oil sector, which has traditionally provided over 90% of foreign exchange earnings. Oil exports are around levels seen before Operation Iraqi Freedom. Total government revenues have benefited from high oil prices in recent years; however, revenues have declined significantly since the oil price drop in fall 2008. Iraq is making some progress in building the institutions needed to implement economic policy. In March 2009 Iraq concluded a Stand-By Arrangement (SBA) with the IMF that details economic reforms. The SBA allows an 80% reduction of the debt owed to Paris Club creditor nations. The International Compact with Iraq was established in May 2007 to integrate Iraq into the regional and global economy, and the Iraqi government is seeking to pass laws to strengthen its economy. This legislation includes a hydrocarbon law to establish a modern legal framework to allow Iraq to develop its resources and a revenue sharing law to equitably divide oil revenues within the nation, although both are still under contentious political negotiation. Some foreign entities have expressed interest in reinvigorating Iraq's industrial sector. The government of Iraq is pursuing a strategy to gain foreign participation in joint ventures with State-owned enterprises. Provincial Councils are also using their own budgets to promote and facilitate investment at the local level. The Central Bank has been successful in controlling inflation through appreciation of the dinar against the US dollar. However, Iraq's challenge will be to use macroeconomic gains to improve the lives of ordinary Iraqis. Reducing corruption and implementing structural reforms, such as bank restructuring and developing the private sector, will be key to Iraq's economic success.

GDP:

GDP - real growth rate: 9.8% (2008 est.) 1.5% (2007 est.) 6.2% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 5% industry: 68% services: 27% (2006 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

Labor force: 7.74 million (2008 est.)

Labor force - by occupation: agriculture: NA% industry: NA% services: NA%

Unemployment rate: 18.2% to 30% (2008 est.)

Budget: revenues: $42.4 billion expenditures: $49.9 billion (FY08 est.)

Industries: petroleum, chemicals, textiles, leather, construction materials, food processing, fertilizer, metal fabrication/processing

Industrial production growth rate: 10.5% (2008 est.)

Electricity - production: 36.92 billion kWh (2008 est.)

Electricity - production by source:

Electricity - consumption: 39.88 billion kWh (2008 est.)

Electricity - exports: 0 kWh (2008)

Electricity - imports: 2.95 billion kWh (2008 est.)

Oil - production: 2.42 million bbl/day (2008 est.)

Oil - consumption: 295,000 bbl/day (2007 est.)

Oil - exports: 1.83 million bbl/day (2008 est.)

Oil - imports: 104,300 bbl/day (2005)

Oil - proved reserves: 115 billion bbl (1 January 2008 est.)

Natural gas - production: 15.66 billion cu m (2008 est.)

Natural gas - consumption: 9.454 billion cu m note: 1.48 billion cu m were flared (2008 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 3.17 trillion cu m (1 January 2008 est.)

Agriculture - products: wheat, barley, rice, vegetables, dates, cotton; cattle, sheep, poultry

Exports: $66.1 billion f.o.b. (2008 est.)

Exports - commodities: crude oil 84%, crude materials excluding fuels 8%, food and live animals 5%

Exports - partners: US 36.8%, Italy 12.6%, South Korea 9.5%, Taiwan 6.3%, Spain 5.2%, Canada 4.7%, France 4.4%, Netherlands 4.2% (2007)

Imports: $43.5 billion f.o.b. (2008 est.)

Imports - commodities: food, medicine, manufactures

Imports - partners: Syria 30.5%, Turkey 19.8%, US 11.1%, Jordan 5%, China 4.8% (2007)

Debt - external: $40.4 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: New Iraqi dinars (NID) per US dollar - 1,176 (2008), 1,255 (2007), 1,466 (2006), 1,475 (2005), 1,890 (second half, 2003)

Fiscal year: