Economy Iraq
Economy - overview:
Iraq's economy is dominated by the oil sector, which has
traditionally provided about 95% of foreign exchange earnings.
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 hurt the economy, implementation of
the UN's oil-for-food program, which began 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. 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. Although a comparatively small
amount of capital plant was damaged during the hostilities, looting,
insurgent attacks, and sabotage have undermined efforts to rebuild
the economy. Attacks on key economic facilities - especially oil
pipelines and infrastructure - have prevented Iraq from reaching
projected export volumes, but total government revenues have been
higher than anticipated due to high oil prices. Despite political
uncertainty, Iraq has established the institutions needed to
implement economic policy, has successfully concluded a three-stage
debt reduction agreement with the Paris Club, and is working toward
a Standby Arrangement with the IMF. The Standby Arrangement would
clear the way for continued debt relief from the Paris Club.
GDP (purchasing power parity):
$94.1 billion (2005 est.)
GDP (official exchange rate):
$46.5 billion (2005 est.)
GDP - real growth rate:
-3% (2005 est.)
GDP - per capita (PPP):
$1,800 (2005 est.)
GDP - composition by sector: agriculture: 7.3% industry: 66.6% services: 26.1% (2004 est.)
Labor force: 7.4 million (2004 est.)
Labor force - by occupation: agriculture: NA% industry: NA% services: NA%
Unemployment rate:
25% to 30% (2005 est.)