Iraq Economy Profile 2008

Economy - overview

Iraq's economy is dominated by the oil sector, which has traditionally provided about 95% of foreign exchange earnings. Although looting, insurgent attacks, and sabotage have undermined economy rebuilding efforts, economic activity is beginning to pick up in areas recently secured by the US military surge. Oil exports are around levels seen before Operation Iraqi Freedom, and total government revenues have benefited from high oil prices. Despite political uncertainty, Iraq is making some progress in building the institutions needed to implement economic policy and has negotiated a debt reduction agreement with the Paris Club and a new Stand-By Arrangement with the IMF. Iraq has received pledges for $13.5 billion in foreign aid for 2004-07 from outside of the US, more than $33 billion in total pledges. 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 bogged down in discussions. The Central Bank has been successful in controlling inflation through appreciation of the dinar against the US dollar. 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)

$100 billion (2007 est.)

GDP (official exchange rate)

$55.44 billion (2007 est.)

GDP - real growth rate

5% (2007 est.)

GDP - per capita (PPP)

$3,600 (2007 est.)

GDP - composition by sector

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

Population below poverty line

NA%

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

4.7% (2007 est.)

Labor force

7.4 million (2004 est.)

Labor force - by occupation

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

Unemployment rate

18% to 30% (2006 est.)

Budget

revenues: $42.3 billion
expenditures: $48.4 billion (FY08 est.)

Industries

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

Industrial production growth rate

4% (2007 est.)

Electricity - production

33.53 billion kWh (2007 est.)

Electricity - consumption

35.84 billion kWh (2007 est.)

Electricity - exports

0 kWh (2007)

Electricity - imports

2.315 billion kWh (2007 est.)

Oil - production

2.11 million bbl/day (2007 est.)

Oil - consumption

295,000 bbl/day (2007 est.)

Oil - imports

NA bbl/day

Oil - exports

1.67 million bbl/day (2007 est.)

Oil - proved reserves

115 billion bbl (1 January 2007 est.)

Natural gas - production

3.5 billion cu m (2007 est.)

Natural gas - consumption

980 million cu m
note: 1.48 billion cu m were flared (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

3.17 trillion cu m (1 January 2007 est.)

Current Account Balance

$7.802 billion (2007 est.)

Agriculture - products

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

Exports

$34.04 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

US 46.7%, Italy 10.7%, Spain 6.2%, Canada 6.2% (2006)

Imports

$23.09 billion f.o.b. (2007 est.)

Imports - commodities

food, medicine, manufactures

Imports - partners

Syria 26.5%, Turkey 20.5%, US 11.8%, Jordan 7.2% (2006)

Reserves of foreign exchange and gold

$21.26 billion (31 December 2007 est.)

Debt - external

$56.31 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$21.65 billion (2005)

Currency (code)

New Iraqi dinar (NID) as of 22 January 2004

Exchange rates

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

Fiscal year

calendar year