| 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 beginning 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 - per capita | $3,400 (2005 est.) |
| GDP - real growth rate (%) | 2.4% (2005 est.) |
| Agriculture - products | wheat, barley, rice, vegetables, dates, cotton; cattle, sheep, poultry |
| GDP - composition by sector (%) | agriculture: 7.3%, industry: 66.6%, services: 26.1% (2004 est.) |
| Industries | petroleum, chemicals, textiles, construction materials, food processing, fertilizer, metal fabrication/processing |
| Economic aid - recipient | more than $33 billion in foreign aid pledged for 2004-07 (2004) |
| Debt - external | $82.1 billion (2005 est.) |
| Population below poverty line (%) | NA |
| Labor force - by occupation (%) | agriculture NA, industry NA, services NA |
Environment, Land use / Resources, Economy, Population / Demographics, Infrastructure, Health -- CIA World Factbook, 2005
