unbekannter Gast

Iraq: Economy#

An improving security environment and foreign investment are helping to spur economic activity, particularly in the energy, construction, and retail sectors. Broader economic development, long-term fiscal health, and sustained improvements in the overall standard of living still depend on the central government passing major policy reforms. Iraq's largely state-run economy is dominated by the oil sector, which provides more than 90% of government revenue and 80% of foreign exchange earnings. Iraq in 2012 boosted oil exports to a 30-year high of 2.6 million barrels per day, a significant increase from Iraq's average of 2.2 million in 2011. Government revenues increased as global oil prices remained persistently high for much of 2012. Iraq's contracts with major oil companies have the potential to further expand oil exports and revenues, but Iraq will need to make significant upgrades to its oil processing, pipeline, and export infrastructure to enable these deals to reach their economic potential. The Iraqi Kurdistan Region's (IKR) autonomous Kurdistan Regional Government (KRG) passed its own oil law in 2007, and has directly signed about 50 contracts to develop IKR energy reserves. The federal government has disputed the legal authority of the KRG to conclude most of these contracts, some of which are also in areas with unresolved administrative boundaries in dispute between the federal and regional government. Iraq is making slow progress enacting laws and developing the institutions needed to implement economic policy, and political reforms are still needed to assuage investors' concerns regarding the uncertain business climate, which may have been harmed by the November 2012 standoff between Baghdad and Erbil and the removal of the Central Bank Governor in October 2012. The government of Iraq is eager to attract additional foreign direct investment, but it faces a number of obstacles including a tenuous political system and concerns about security and societal stability. Rampant corruption, outdated infrastructure, insufficient essential services, skilled labor shortages, and antiquated commercial laws stifle investment and continue to constrain growth of private, nonoil sectors. Iraq is considering a package of laws to establish a modern legal framework for the oil sector and a mechanism to equitably divide oil revenues within the nation, although these reforms are still under contentious and sporadic negotiation. Under the Iraqi Constitution, some competencies relevant to the overall investment climate are either shared by the federal government and the regions or are devolved entirely to the regions. Investment in the IKR operates within the framework of the Kurdistan Region Investment Law (Law 4 of 2006) and the Kurdistan Board of Investment, which is designed to provide incentives to help economic development in areas under the authority of the KRG. Inflation has remained under control since 2006 as security improved. However, Iraqi leaders remain hard pressed to translate macroeconomic gains into an improved standard of living for the Iraqi populace. Unemployment remains a problem throughout the country despite a bloated public sector. Encouraging private enterprise through deregulation would make it easier for Iraqi citizens and foreign investors to start new businesses. Rooting out corruption and implementing reforms - such as restructuring banks and developing the private sector - would be important steps in this direction.

Economic Facts#

GDP (purchasing power parity)$249.4 billion (2013 est.)
$239.3 billion (2012 est.)
$220.7 billion (2011 est.)
note: data are in 2013 US dollars
GDP - real growth rate4.2% (2013 est.)
8.4% (2012 est.)
8.6% (2011 est.)
GDP - per capita (PPP)$7,100 (2013 est.)
$7,100 (2012 est.)
$6,800 (2011 est.)
note: data are in 2013 US dollars
GDP - composition, by sector of originagriculture: 3.3%
industry: 64.6%
services: 32.1% (2013 est.)
Population below poverty line25% (2008 est.)
Household income or consumption by percentage sharelowest 10%: 3.6%
highest 10%: 25.7% (2007 est.)
Labor force - by occupationagriculture: 21.6%
industry: 18.7%
services: 59.8% (2008 est.)
Exports - commoditiescrude oil 84%, crude materials excluding fuels, food and live animals
Exports - partnersUS 21.1%, India 20.2%, China 13.6%, South Korea 11%, Canada 4.7%, Italy 4.4%, Spain 4.2% (2012)
Agriculture - productswheat, barley, rice, vegetables, dates, cotton; cattle, sheep, poultry
Budgetrevenues: $99.52 billion
expenditures: $97.42 billion (2013 est.)
Imports - commoditiesfood, medicine, manufactures
Imports - partnersTurkey 27.5%, Syria 16.2%, China 12.5%, US 5.2%, South Korea 4.7% (2012)
Exchange ratesIraqi dinars (IQD) per US dollar -
1,166 (2013 est.)
1,166.17 (2012 est.)
1,170 (2010 est.)
1,170 (2009)
1,176 (2008)
Exports$91.99 billion (2013 est.)
$94.21 billion (2012 est.)
Debt - external$59.49 billion (31 December 2013 est.)
$60.2 billion (31 December 2012 est.)
Fiscal yearcalendar year
Imports$66.61 billion (2013 est.)
$50.16 billion (2012 est.)
Industrial production growth rate6.9% (2013 est.)
Industriespetroleum, chemicals, textiles, leather, construction materials, food processing, fertilizer, metal fabrication/processing
Inflation rate (consumer prices)2% (2013 est.)
6.1% (2012 est.)
Labor force8.9 million (2010 est.)
Unemployment rate16% (2012 est.)
15% (2010 est.)
Current account balance$12.85 billion (2013 est.)
$29.54 billion (2012 est.)
Reserves of foreign exchange and gold$71.24 billion (31 December 2013 est.)
$70.33 billion (31 December 2012 est.)
GDP (official exchange rate)$221.8 billion (2013 est.)
Market value of publicly traded shares$4 billion (9 December 2011)
$2.6 billion (31 July 2010)
$2 billion (31 July 2009 est.)
Central bank discount rate6% (December 2012)
6% (December 2011)
Commercial bank prime lending rate6% (31 December 2013 est.)
6% (31 December 2012 est.)
Stock of domestic credit$-3.902 million (31 December 2013 est.)
$-3.981 million (31 December 2012 est.)
Stock of narrow money$62.33 billion (31 December 2013 est.)
$54.68 billion (31 December 2012 est.)
Stock of broad money$74.81 billion (31 December 2013 est.)
$64.74 billion (31 December 2012 est.)
Taxes and other revenues44.9% of GDP (2013 est.)
Budget surplus (+) or deficit (-)0.9% of GDP (2013 est.)