Economy - overview:
Iraq's GDP growth slowed to 1.1% in 2017, a marked decline compared to the previous two years as domestic consumption and investment fell because of civil violence and a sluggish oil market. The Iraqi Government received its third tranche of funding from its 2016 Stand-By Arrangement (SBA) with the IMF in August 2017, which is intended to stabilize its finances by encouraging improved fiscal management, needed economic reform, and expenditure reduction. Additionally, in late 2017 Iraq received more than $1.4 billion in financing from international lenders, part of which was generated by issuing a $1 billion bond for reconstruction and rehabilitation in areas liberated from ISIL. Investment and key sector diversification are crucial components to Iraq’s long-term economic development and require a strengthened business climate with enhanced legal and regulatory oversight to bolster private-sector engagement. The overall standard of living depends on global oil prices, the central government passage of major policy reforms, a stable security environment post-ISIS, and the resolution of civil discord with the Kurdish Regional Government (KRG).

Iraq's largely state-run economy is dominated by the oil sector, which provides roughly 85% of government revenue and 80% of foreign exchange earnings, and is a major determinant of the economy's fortunes. Iraq's contracts with major oil companies have the potential to further expand oil exports and revenues, but Iraq will need to make significant upgrades to its oil processing, pipeline, and export infrastructure to enable these deals to reach their economic potential.

In 2017, Iraqi oil exports from northern fields were disrupted following a KRG referendum that resulted in the Iraqi Government reasserting federal control over disputed oil fields and energy infrastructure in Kirkuk. The Iraqi government and the KRG dispute the role of federal and regional authorities in the development and export of natural resources. In 2007, the KRG passed an oil law to develop IKR oil and gas reserves independent of the federal government. The KRG has signed about 50 contracts with foreign energy companies to develop its reserves, some of which lie in territories taken by Baghdad in October 2017. The KRG is able to unilaterally export oil from the fields it retains control of through its own pipeline to Turkey, which Baghdad claims is illegal. In the absence of a national hydrocarbons law, the two sides have entered into five provisional oil- and revenue-sharing deals since 2009, all of which collapsed.

Iraq is making slow progress enacting laws and developing the institutions needed to implement economic policy, and political reforms are still needed to assuage investors' concerns regarding the uncertain business climate. The Government of Iraq is eager to attract additional foreign direct investment, but it faces a number of obstacles, including a tenuous political system and concerns about security and societal stability. Rampant corruption, outdated infrastructure, insufficient essential services, skilled labor shortages, and antiquated commercial laws stifle investment and continue to constrain growth of private, nonoil sectors. Under the Iraqi constitution, some competencies relevant to the overall investment climate are either shared by the federal government and the regions or are devolved entirely to local governments. Investment in the IKR operates within the framework of the Kurdistan Region Investment Law (Law 4 of 2006) and the Kurdistan Board of Investment, which is designed to provide incentives to help economic development in areas under the authority of the KRG.

Inflation has remained under control since 2006. However, Iraqi leaders remain hard-pressed to translate macroeconomic gains into an improved standard of living for the Iraqi populace. Unemployment remains a problem throughout the country despite a bloated public sector. Overregulation has made it difficult for Iraqi citizens and foreign investors to start new businesses. Corruption and lack of economic reforms - such as restructuring banks and developing the private sector – have inhibited the growth of the private sector.

GDP (purchasing power parity):
$649.3 billion (2017 est.)
$662.9 billion (2016 est.)
$586.3 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 34
[see also: GDP country ranks ]

GDP (official exchange rate):
$192.4 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
-2.1% (2017 est.)
13.1% (2016 est.)
2.5% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 206
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$16,700 (2017 est.)
$17,500 (2016 est.)
$15,900 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 107
[see also: GDP - per capita country ranks ]

Gross national saving:
19% of GDP (2017 est.)
13.1% of GDP (2016 est.)
18.4% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 103
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 50.4% (2013 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 22.9% (2016 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 20.6% (2016 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0% (2016 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 32.5% (2016 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -40.9% (2016 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 3.3% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 51% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 45.8% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

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

Industrial production growth rate:
0.7% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 163
[see also: Industrial production growth rate country ranks ]

Labor force:
8.9 million (2010 est.)
country comparison to the world (CIA rank, may be based on non-current data): 57
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 21.6%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 18.7%
[see also: Labor force - by occupation - industry country ranks ]
services: 59.8% (2008 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
16% (2012 est.)
15% (2010 est.)
country comparison to the world (CIA rank, may be based on non-current data): 175
[see also: Unemployment rate country ranks ]

Population below poverty line:
23% (2014 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 3.6%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 25.7% (2007 est.)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Budget:
revenues: 68.71 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 76.82 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
35.7% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 59
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-4.2% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 160
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
59.7% of GDP (2017 est.)
66% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 74
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
0.1% (2017 est.)
0.5% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 14
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
6% (2016)
6% (2015)
country comparison to the world (CIA rank, may be based on non-current data): 70
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
12.7% (31 December 2017 est.)
12.7% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 65
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$60.1 billion (31 December 2017 est.)
$59.84 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 50
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$60.1 billion (31 December 2017 est.)
$59.84 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 50
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$34.61 billion (31 December 2017 est.)
$31.93 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 76
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$4 billion (9 December 2011)
$2.6 billion (31 July 2010)
$2 billion (31 July 2009 est.)
country comparison to the world (CIA rank, may be based on non-current data): 89
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$4.344 billion (2017 est.)
-$13.38 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 31
[see also: Current account balance country ranks ]

Exports:
$61.4 billion (2017 est.)
$41.72 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 46
[see also: Exports country ranks ]

Exports - partners:
India 21.2%, China 20.2%, US 15.8%, South Korea 9.4%, Greece 5.3%, Netherlands 4.8%, Italy 4.7% (2017)

Exports - commodities:
crude oil 99%, crude materials excluding fuels, food, live animals

Imports:
$39.47 billion (2017 est.)
$19.57 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 60
[see also: Imports country ranks ]

Imports - commodities:
food, medicine, manufactures

Imports - partners:
Turkey 27.8%, China 25.7%, South Korea 4.7%, Russia 4.3% (2017)

Reserves of foreign exchange and gold:
$48.88 billion (31 December 2017 est.)
$45.36 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 41
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$73.02 billion (31 December 2017 est.)
$64.16 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 59
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$26.63 billion (2015 est.)
$23.16 billion (2014 est.)
country comparison to the world (CIA rank, may be based on non-current data): 74
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$2.109 billion (2015 est.)
$1.956 billion (2014 est.)
country comparison to the world (CIA rank, may be based on non-current data): 82
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Iraqi dinars (IQD) per US dollar -
1,184 (2017 est.)
1,182 (2016 est.)
1,182 (2015 est.)
1,167.63 (2014 est.)
1,213.72 (2013 est.)