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 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. 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. Despite continuing political uncertainty, the Iraqi Interim Government (IG) has founded the institutions needed to implement economic policy, and has successfully concluded a debt reduction agreement with the Paris Club. The high percentage gain estimated for GDP in 2004 is the result of starting from a low base.
GDP:
purchasing power parity - $54.4 billion (2004 est.)
GDP - real growth rate:
52.3% (2004 est.)
GDP - per capita:
purchasing power parity - $2,100 (2004 est.)
GDP - composition by sector:
agriculture: 13.6%
industry: 58.6%
services: 27.8% (2004 est.)
Labor force:
6.7 million (2004 est.)
Labor force - by occupation:
agriculture NA, industry NA, services NA
Unemployment rate:
25% to 30% (2004 est.)
Population below poverty line:
NA
Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA
Inflation rate (consumer prices):
25.4% (2004 est.)
Budget:
revenues: $17.1 billion
expenditures: $28.2 billion, including capital expenditures of $5.6 billion (2004 budget)
Agriculture - products:
wheat, barley, rice, vegetables, dates, cotton; cattle, sheep, poultry
Industries:
petroleum, chemicals, textiles, construction materials, food processing, fertilizer, metal fabrication/processing
Industrial production growth rate:
NA
Electricity - production:
32.6 billion kWh (2004)
Electricity - consumption:
33.7 billion kWh (2004)
Electricity - exports:
0 kWh (2004)
Electricity - imports:
1.1 billion kWh (2004)
Oil - production:
2.25 million bbl/day (2004 est.); note - prewar production (in 2002) was 2.03 million bbl/day (2004 est.)
Oil - consumption:
383,000 bbl/day (2004 est.)
Oil - exports:
1.49 million bbl/day (2004 est.)
Oil - imports:
NA
Oil - proved reserves:
112.5 billion bbl (2004 est.)
Natural gas - production:
2.35 billion cu m (2002 est.)
Natural gas - consumption:
2.35 billion cu m (2002 est.)
Natural gas - exports:
0 cu m (2004 est.)
Natural gas - imports:
0 cu m (2004 est.)
Natural gas - proved reserves:
3.149 trillion cu m (2004)
Current account balance:
$-560 million (2003 est.)
Exports:
$10.1 billion f.o.b. (2004 est.)
Exports - commodities:
crude oil (83.9%), crude materials excluding fuels (8.0%), food and live animals (5.0%)
Exports - partners:
US 55.8%, Spain 8%, Japan 7.3%, Italy 6.5%, Canada 5.8% (2004)
Imports:
$9.9 billion f.o.b. (2004 est.)
Imports - commodities:
food, medicine, manufactures
Imports - partners:
Turkey 25%, US 11.1%, Jordan 10%, Vietnam 7.7%, Germany 5.6%, Australia 4.8% (2004)
Debt - external:
$125 billion (2004 est.)
Economic aid - recipient:
more than $33 billion in foreign aid pledged for 2004-07 (2004)
Currency (code):
New Iraqi dinar (NID) as of 22 January 2004
Exchange rates:
New Iraqi dinars per US dollar - 1,890 (second half, 2003), 0.3109 (2002), 0.3109 (2001), 0.3109 (2000)
Fiscal year:
calendar year
