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    Iraq Index 2006

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    Iraq Economy - 2006

      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):
      $3,400 (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.)

      Population below poverty line:

      Household income or consumption by percentage share:
      lowest 10%: NA%
      highest 10%: NA%

      Inflation rate (consumer prices):
      40% (2005 est.)

      revenues: $19.3 billion
      expenditures: $24 billion; including capital expenditures of $5 billion (2005 budget)

      Agriculture - products:
      wheat, barley, rice, vegetables, dates, cotton; cattle, sheep, poultry

      petroleum, chemicals, textiles, leather, construction materials, food processing, fertilizer, metal fabrication/processing

      Industrial production growth rate:

      Electricity - production:
      31.7 billion kWh (2005)

      Electricity - consumption:
      33.3 billion kWh (2005)

      Electricity - exports:
      0 kWh (2005)

      Electricity - imports:
      2.02 billion kWh (2005)

      Oil - production:
      2.093 million bbl/day; note - prewar production (in 2002) was 2.03 million bbl/day (2005 est.)

      Oil - consumption:
      351,500 bbl/day (2005 est.)

      Oil - exports:
      1.42 million bbl/day (2005 est.)

      Oil - imports:
      NA bbl/day

      Oil - proved reserves:
      112.5 billion bbl (2005 est.)

      Natural gas - production:
      1.5 billion cu m (2003 est.)

      Natural gas - consumption:
      1.5 billion cu m (2003 est.)

      Natural gas - exports:
      0 cu m (2004 est.)

      Natural gas - imports:
      0 cu m (2004 est.)

      Natural gas - proved reserves:
      3.115 trillion cu m (2005)

      Current account balance:
      -$9.447 billion (2004 est.)

      $17.78 billion f.o.b. (2004)

      Exports - commodities:
      crude oil (83.9%), crude materials excluding fuels (8.0%), food and live animals (5.0%)

      Exports - partners:
      US 51.9%, Spain 7.3%, Japan 6.6%, Italy 5.7%, Canada 5.2% (2004)

      $19.57 billion f.o.b. (2004)

      Imports - commodities:
      food, medicine, manufactures

      Imports - partners:
      Syria 23%, Turkey 19.5%, US 9.2%, Jordan 6.7%, Germany 4.9% (2004)

      Reserves of foreign exchange and gold:
      $8.4 billion (2005 est.)

      Debt - external:
      $82.1 billion (2005 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 - 1,475 (2005), 1,890 (second half, 2003), 0.3109 (2001)

      Fiscal year:
      calendar year

      NOTE: The information regarding Iraq on this page is re-published from the 2006 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iraq Economy 2006 information contained here. All suggestions for corrections of any errors about Iraq Economy 2006 should be addressed to the CIA.

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    Revised 06-Jun-06
    Copyright © 2006 Photius Coutsoukis (all rights reserved)