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.
GDP:
purchasing power parity - $58 billion (2002 est.)
GDP - real growth rate:
-3% (2002 est.)
GDP - per capita:
purchasing power parity - $2,400 (2002 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):
70% (2002 est.)
Labor force:
6.5 million (2002 est.)
Labor force - by occupation:
agriculture NA%, industry NA%, services NA%
Unemployment rate:
NA%
Budget:
revenues: $NA
expenditures: $NA, including capital expenditures of $NA
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:
2.452 million bbl/day (2001 est.); note - production was disrupted
as a result of the March-April 2003 war (2001 est.)
Oil - consumption:
460,000 bbl/day (2001 est.)
Oil - exports:
NA (2001)
Oil - imports:
NA (2001)
Oil - proved reserves:
113.8 billion bbl (37257)
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 (37257)
Agriculture - products:
wheat, barley, rice, vegetables, dates, cotton; cattle, sheep
Exports:
$13 billion f.o.b. (2002 est.)
Exports - commodities:
crude oil
Exports - partners:
US 40.9%, Canada 8.2%, France 8.2%, Jordan 7.5%, Netherlands 6.4%,
Italy 5.4%, Morocco 4.7%, Spain 4.4% (2002)
Imports:
$7.8 billion f.o.b. (2002 est.)
Imports - commodities:
food, medicine, manufactures
Imports - partners:
Jordan 11%, France 8.8%, China 8.4%, Germany 7.6%, Russia 7.3%,
Australia 7.2%, Vietnam 6.6%, Italy 6.4%, Japan 5.6% (2002)
Debt - external:
$120 billion (2002 est.)
Economic aid - recipient:
$327.5 million (1995)
Currency:
Iraqi dinar (IQD)
Currency code:
IQD
Exchange rates:
Iraqi dinars per US dollar - 0.31 (2002), 0.31 (2001), 0.31 (2000),
0.31 (1999), 0.31 (1998), note: fixed official rate since 1982;
market rate subject to wide fluctuations
Fiscal year:
calendar year