Economy - overview Iraq's economy is dominated by the oil sector, which has traditionally provided about 95% of foreign exchange earnings. In the 1980s financial problems caused by massive expenditures in the eight-year war with Iran and damage to oil export facilities by Iran led the government to implement austerity measures, borrow heavily, and later reschedule foreign debt payments; Iraq suffered economic losses from the war of at least $100 billion. After hostilities ended in 1988, oil exports gradually increased with the construction of new pipelines and restoration of damaged facilities. 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 have hurt the economy, implementation of the UN's oil-for-food program in December 1996 has helped improve conditions for the average Iraqi citizen. For the first six, six-month phases of the program, 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. Oil exports are now more than three-quarters prewar level. However, 28% of Iraq's export revenues under the program are deducted to meet UN Compensation Fund and UN administrative expenses. The drop in GDP in 2001 was largely the result of the global economic slowdown and lower oil prices. Per capita food imports have increased significantly, while medical supplies and health care services are steadily improving. Per capita output and living standards are still well below the prewar level, but any estimates have a wide range of error.

GDP purchasing power parity - $59 billion (2001 est.)

GDP - real growth rate -5.7% (2001 est.)

GDP - per capita purchasing power parity - $2,500 (2001 est.)

GDP - composition by sector
agriculture: 6%
industry: 13%
services: 81% (1993 est.)

Population below poverty line NA%

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

Inflation rate (consumer prices) 60% (2001 est.)

Labor force 4.4 million (1989)

Labor force - by occupation agriculture NA%, industry NA%, services NA%

Unemployment rate NA%

Budget
revenues: $NA
expenditures: $NA, including capital expenditures of $NA

Industries petroleum, chemicals, textiles, construction materials, food processing

Industrial production growth rate NA%

Electricity - production 27.3 billion kWh (2000)

Electricity - production by source
fossil fuel: 98.17%
hydro: 1.83%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 25.389 billion kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

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

Exports $15.8 billion (f.o.b., 2001 est.)

Exports - commodities crude oil

Exports - partners US 46.2%, Italy 12.2%, France 9.6%, Spain 8.6% (2000)

Imports $11 billion (f.o.b., 2001 est.)

Imports - commodities food, medicine, manufactures

Imports - partners France 22.5%, Australia 22%, China 5.8%, Russia 5.8% (2000)

Debt - external $62.2 billion (2001 est.)

Economic aid - recipient $327.5 million (1995)

Currency Iraqi dinar (IQD)

Currency code IQD

Exchange rates Iraqi dinars per US dollar - 0.3109 (fixed official rate since 1982); black market rate - Iraqi dinars per US dollar - 2,000 (December 2001), 1,910 (December 1999), 1,815 (December 1998), 1,530 (December 1997), 910 (December 1996); note - subject to wide fluctuations

Fiscal year calendar year

NOTE: The information regarding Iraq on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iraq Economy 2002 information contained here. All suggestions for corrections of any errors about Iraq Economy 2002 should be addressed to the CIA.