Iraq Economy Profile 2009

Economy - overview

Decreasing insurgent attacks and an improving security environment in many parts of the country are helping to spur economic activity. Iraq's economy is dominated by the oil sector, which has traditionally provided over 90% of foreign exchange earnings. Oil exports are around levels seen before Operation Iraqi Freedom. Total government revenues have benefited from high oil prices in recent years; however, revenues have declined significantly since the oil price drop in fall 2008. Iraq is making some progress in building the institutions needed to implement economic policy. In March 2009 Iraq concluded a Stand-By Arrangement (SBA) with the IMF that details economic reforms. The SBA allows an 80% reduction of the debt owed to Paris Club creditor nations. The International Compact with Iraq was established in May 2007 to integrate Iraq into the regional and global economy, and the Iraqi government is seeking to pass laws to strengthen its economy. This legislation includes a hydrocarbon law to establish a modern legal framework to allow Iraq to develop its resources and a revenue sharing law to equitably divide oil revenues within the nation, although both are still under contentious political negotiation. Some foreign entities have expressed interest in reinvigorating Iraq's industrial sector. The government of Iraq is pursuing a strategy to gain foreign participation in joint ventures with State-owned enterprises. Provincial Councils are also using their own budgets to promote and facilitate investment at the local level. The Central Bank has been successful in controlling inflation through appreciation of the dinar against the US dollar. However, Iraq's challenge will be to use macroeconomic gains to improve the lives of ordinary Iraqis. Reducing corruption and implementing structural reforms, such as bank restructuring and developing the private sector, will be key to Iraq's economic success.

GDP (purchasing power parity)

$103.9 billion (2008 est.)
$96.39 billion (2007 est.)
$94.97 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$90.91 billion (2008 est.)

GDP - real growth rate

7.8% (2008 est.)
1.5% (2007 est.)
6.2% (2006 est.)

GDP - per capita (PPP)

$3,700 (2008 est.)
$3,500 (2007 est.)
$3,500 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 5%
industry: 68%
services: 27% (2006 est.)

Population below poverty line

NA%

Labor force

7.74 million (2008 est.)

Labor force - by occupation

agriculture: NA%
industry: NA%
services: NA%

Unemployment rate

18.2% (2008 est.)
18% (2006 est.)
note: official data; unofficial estimates as high as 30%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Budget

revenues: $42.4 billion
expenditures: $49.9 billion (FY08 est.)

Inflation rate (consumer prices)

6.8% (2008 est.)
4.7% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
20% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
19.74% (31 December 2007)

Stock of money

$NA (31 December 2008)
$18.81 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$3.67 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$NA (31 December 2007)

Industries

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

Industrial production growth rate

10.5% (2008 est.)

Electricity - production

36.92 billion kWh (2008 est.)

Electricity - production by source

fossil fuel: 98.4%
hydro: 1.6%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

39.88 billion kWh (2008 est.)

Electricity - exports

0 kWh (2008)

Electricity - imports

2.95 billion kWh (2008 est.)

Oil - production

2.42 million bbl/day (2008 est.)

Oil - consumption

295,000 bbl/day (2007 est.)

Oil - imports

104,300 bbl/day (2005)

Oil - exports

1.83 million bbl/day (2008 est.)

Oil - proved reserves

112.5 billion bbl (1 January 2008 est.)

Natural gas - production

15.66 billion cu m (2008 est.)

Natural gas - consumption

9.454 billion cu m
note: 1.48 billion cu m were flared (2008 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

3.17 trillion cu m (1 January 2008 est.)

Current Account Balance

$14.05 billion (2008 est.)
$4.909 billion (2007 est.)

Agriculture - products

wheat, barley, rice, vegetables, dates, cotton; cattle, sheep, poultry

Exports

$66.1 billion (2008 est.)
$36.08 billion (2007 est.)

Exports - commodities

crude oil 84%, crude materials excluding fuels 8%, food and live animals 5%

Exports - partners

US 43.5%, Italy 11%, South Korea 7.3%, Canada 4.5%, France 4.1% (2008)

Imports

$43.5 billion (2008 est.)
$25.67 billion (2007 est.)

Imports - commodities

food, medicine, manufactures

Imports - partners

Syria 27.6%, Turkey 20.6%, US 11.2%, China 6.2%, Jordan 4.7% (2008)

Reserves of foreign exchange and gold

$45.06 billion (31 December 2008 est.)
$30.66 billion (31 December 2007 est.)

Debt - external

$67.74 billion (31 December 2008 est.)
$100.9 billion (31 December 2007 est.)

Market value of publicly traded shares

$1.878 billion (31 March 2008)
$NA (31 December 2007)
$NA (31 December 2006)

Economic aid - recipient

$21.65 billion (2005)

Currency (code)

New Iraqi dinar (NID) as of 22 January 2004

Currency (code)

NID, IQD prior to 22 January 2004

Exchange rates

New Iraqi dinars (NID) per US dollar - 1,176 (2008), 1,255 (2007), 1,466 (2006), 1,475 (2005), 1,890 (second half, 2003)

Fiscal year

calendar year