Iraq Economy 1997

Economy - overview The Ba'thist regime engages in extensive central planning and managementof industrial production and foreign trade while leaving some small-scaleindustry and services and most agriculture to private enterprise. The economyhas been dominated by the oil sector, which has traditionally provided about95% of foreign exchange earnings. In the 1980s, financial problems causedby massive expenditures in the eight-year war with Iran and damage to oilexport facilities by Iran, led the government to implement austerity measuresand to borrow heavily and later reschedule foreign debt payments; Iraq sufferedeconomic losses of at least $100 billion from the war. After the end of hostilitiesin 1988, oil exports gradually increased with the construction of new pipelinesand restoration of damaged facilities. Agricultural development remained hamperedby labor shortages, salinization, and dislocations caused by previous landreform and collectivization programs. The industrial sector, although accordedhigh priority by the government, also was under financial constraints. Iraq'sseizure of Kuwait in August 1990, subsequent international economic embargoes,and military action by an international coalition beginning in January 1991drastically changed the economic picture. Industrial and transportation facilities,which suffered severe damage, have been partially restored. Oil exports areat 25% of the prewar level following the implementation of UN Security CouncilResolution 986 in December 1996. Shortages of spare parts continue. The UN-sponsoredeconomic embargo has reduced exports and imports and has contributed to thesharp rise in prices. The Iraqi Government has been unwilling to abide byUN resolutions so that the economic embargo could be removed. The government'spolicies of supporting large military and internal security forces and ofallocating resources to key supporters of the regime have exacerbated shortages.In accord with a UN resolution Iraq agreed to an oil-for-food deal in 1996,under which it would export $2 billion worth of oil in exchange for badlyneeded food and medicine. The first oil was pumped in December 1996, and thefirst supplies of food and medicine should arrive in March 1997. Per capitaoutput for 1995-96 and living standards are well below the 1989-90 level,but any estimates have a wide range of error.

GDP purchasing power parity - $42 billion (1996 est.)

GDP - real growth rate 0% (1996 est.)

GDP - per capita purchasing power parity - $2,000 (1996 est.)

GDP - composition by sector
agriculture: NA%
industry: NA%
services: NA%

Inflation rate - consumer price index NA%

Labor force
total: 4.4 million (1989)
by occupation: services 48%, agriculture 30%, industry 22%
note : severe labor shortage; expatriate labor force was about 1,600,000 (July1990); since then, it has declined substantially

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 - capacity 6.83 million kW (1996)

Electricity - production 31.8 billion kWh (1996)

Electricity - consumption per capita 1,362 kWh (1996 est.)

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

Exports $NA
commodities: crude oil
partners: Jordan, Turkey (1996)

Imports $NA
commodities: manufactures, food
partners: France, Turkey, Jordan, Vietnam, Australia (1996)

Debt - external very heavy relative to GDP but amount unknown (1996)

Economic aid
recipient: ODA, $NA

Currency 1 Iraqi dinar (ID) = 1,000 fils

Exchange rates Iraqi dinars (ID) per US$1 - 0.3109 (fixed official rate since 1982);black market rate - Iraqi dinars (ID) per US$1 - 1,200 (May 1997), 3,000 (December1995); subject to wide fluctuations

Fiscal year calendar year

NOTE: The information regarding Iraq on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iraq Economy 1997 information contained here. All suggestions for corrections of any errors about Iraq Economy 1997 should be addressed to the CIA.