Overview: Development of the economy is guided by central planning, although economic reforms instituted in 1987 allowed some privatization. The economy is dominated by the oil sector, which provides about 95% of foreign exchange earnings. Since the early 1980s financial problems, caused by war expenditures and damage to oil export facilities by Iran, have led the government to implement austerity measures and to reschedule foreign debt payments. Oil exports have gradually increased as new pipelines have been constructed. Although the agricultural sector was privatized in 1987, development remains hampered by labor shortages, salinization, and dislocations caused by previous land reform and collectivization programs. The agricultural sector employs about 35% of the labor force but accounts for less than 10% of GNP. The industrial sector, although accorded high priority by the government, is under financial constraints. New investment funds are allocated only to those projects which rely heavily on local raw materials and result either in import substitution or foreign exchange earnings.

GNP: $34 billion, per capita $1,950; real growth rate 0% (1988)

Inflation rate (consumer prices): 25-30% (1988 est.)

Unemployment rate: less than 5%

Budget: revenues $20.0 billion; expenditures $18.6 billion, including capital expenditures of NA (1987)

Exports: $12.4 billion (f.o.b., 1988); @m5commodities--crude oil and refined products, dates; @m5partners--Brazil, Italy, Turkey, France, Japan, Spain, USSR, Yugoslavia, US (1987)

Imports: $13.0 billion (c.i.f., 1988); @m5commodities--food, manufactures, consumer goods; @m5partners--Turkey, US, FRG, UK, France, Japan, USSR, other Communist countries, Italy (1987)

External debt: $40 billion (1988 est.); excluding nominal debt to Gulf Arab states

Industrial production: growth rate 5% (1988)

Electricity: 8,692,000 kW capacity; 22,839 million kWh produced, 1,300 kWh per capita (1988)

Industries: petroleum, textiles, construction materials, food processing

Agriculture: vegetables, wheat, barley, dates, rice, livestock

Aid: NA

Currency: Iraqi dinar (plural--dinars); 1 Iraqi dinar (ID) = 1,000 fils

Exchange rates: Iraqi dinars (ID) per US$1--0.3109 (fixed rate since 1982)

Fiscal year: calendar year

NOTE: The information regarding Iraq on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iraq Economy 1989 information contained here. All suggestions for corrections of any errors about Iraq Economy 1989 should be addressed to the CIA.