Facts >
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 the 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. Oil exports
have recently been more than three-quarters prewar level. However, 28% of
Iraq's export revenues under the program have been deducted to meet UN
Compensation Fund and UN administrative expenses. 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 prewar 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 and the loss of a comparatively small
amount of capital plant.
Iraq's economy is characterized by a heavy
dependence on oil exports and an emphasis on development through central
planning. Prior to the outbreak of the war with Iran in September 1980,
Iraq's economic prospects were bright. Oil production had reached a level
of 3.5 million barrels per day, and oil revenues were $21 billion in 1979
and $27 billion in 1980. At the outbreak of the war, Iraq had amassed an
estimated $35 billion in foreign exchange reserves.
The Iran-Iraq War depleted Iraq's foreign
exchange reserves, devastated its economy, and left the country saddled
with a foreign debt of more than $40 billion. After hostilities ceased,
oil exports gradually increased with the construction of new pipelines and
the restoration of damaged facilities.
Iraq's invasion of Kuwait in August 1990,
subsequent international sanctions, and damage from military action by an
international coalition beginning in January 1991 drastically reduced
economic activity. Government policies of diverting income to key
supporters of the regime while sustaining a large military and internal
security force further impaired finances, leaving the average Iraqi
citizen facing desperate hardships. Implementation of a UN oil-for-food
program in December 1996 has improved conditions for the average Iraqi
citizen. Since 1999, Iraq was authorized to export unlimited quantities of
oil to finance humanitarian needs including food, medicine, and
infrastructure repair parts. Oil exports fluctuate as the regime
alternately starts and stops exports, but, in general, oil exports have
now reached three-quarters of their pre-Gulf War levels. Per capita output
and living standards remain well below pre-Gulf War levels.
GDP
purchasing power parity - $59 billion
(2001 est.)
GDP - real growth rate
-5.7% (2001 est.)
GDP - per capita purchasing power parity - $2,500 (2001
est.)
GDP - composition by sector
-
agriculture 6%
-
industry 13%
-
services 81% (1993 est.)
Population below poverty line NA%
Household income or consumption by percentage share
-
lowest 10% NA%
-
highest 10% NA%
Inflation rate (consumer prices)
60% (2001 est.)
Labor force 6.5 million (2002 est.)
Labor force - by occupation agriculture NA%, industry NA%, services NA%
Unemployment rate
NA%
Budget
Industries
petroleum, chemicals, textiles, construction materials, food processing
Industrial production growth rate NA%
Electricity - production 27.3 billion kWh (2000)
Electricity - production by source
-
fossil fuel 98%
-
hydro 2%
-
other 0% (2000)
-
nuclear 0%
Electricity - consumption 25.389 billion kWh (2000)
Electricity - exports
0 kWh (2000)
Electricity - imports 0 kWh (2000)
Agriculture
- products
wheat, barley, rice, vegetables, dates, cotton; cattle, sheep
Exports $15.8 billion f.o.b. (2001 est.)
Exports - commodities crude oil
Exports - partners US 46.2%, Italy 12.2%, France 9.6%, Spain
8.6% (2000)
Imports $11 billion f.o.b. (2001 est.)
Imports - commodities food, medicine, manufactures
Imports - partners France 22.5%, Australia 22%, China 5.8%,
Russia 5.8% (2000)
Debt - external $120 billion (2002 est.)
Economic aid - recipient $327.5 million (1995) (1995)
Currency
Iraqi dinar (IQD)
Currency code IQD
Exchange rates
Iraqi dinars per US dollar - 0.3109 (fixed
official rate since 1982); black market rate - Iraqi dinars per US dollar
- 2,000 (December 2001), 1,910 (December 1999), 1,815 (December 1998),
1,530 (December 1997), 910 (December 1996); note - subject to wide
fluctuations
Fiscal year calendar year
Communications
Telephones - main lines in use 675,000 (1997)
Telephones - mobile cellular NA; service available in northern Iraq
(2001)
Telephone system
general assessment an unknown number of telecommunication facilities were
damaged during the March-April 2003 war
domestic the network consists of coaxial cables and microwave radio relay
links
international satellite earth stations - 2 Intelsat (1 Atlantic Ocean and
1 Indian Ocean), 1 Intersputnik (Atlantic Ocean region), and 1 Arabsat
(inoperative); coaxial cable and microwave radio relay to Jordan, Kuwait,
Syria, and Turkey; Kuwait line is probably no operational.
Radio broadcast stations
AM 19 (5 are inactive), FM 51, shortwave 4
(1998)
Radios 4.85 million (1997)
Television broadcast stations 13 (1997)
Televisions 1.75 million (1997)
Internet country code iq
Internet Service Providers (ISPs) 1 (2000)
Internet users
12,500 (2001)
