unbekannter Gast

Iraq: Economy#

During 2015, worsening security and financial stability throughout Iraq - driven by an ongoing insurgency, decreasing oil prices, and political upheaval - decreased prospects for improving the country's economic environment and securing much-needed foreign investment. Long-term fiscal health, a strengthened investment climate, and sustained improvements in the overall standard of living still depend on a rebound in global oil prices, the central government passing major policy reforms, and finishing the conflict with ISIL.

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. Oil exports in 2015 averaged 3.0 million barrels per day, up from 2014, but a failed revenue- and oil-sharing agreement with the Iraqi Kurdistan Region's (IKR) autonomous Kurdistan Regional Government (KRG) resulted in a loss of exports from northern oil fields. Moreover, falling global oil prices resulted in declining export revenues. 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 IKR's autonomous 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. In December 2014, the federal government and the KRG agreed to sell oil exports from Kurdish-controlled oilfields under the federal oil ministry, in exchange for the central government paying $1 billion to the Kurdish Peshmerga forces and resuming budget transfers to the KRG that amount to 17% of Iraq's national budget. However, that deal fell apart in 2015.

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. 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. 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 local governments. 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. 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)$596.7 billion (2016 est.)
$541 billion (2015 est.)
$554.1 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$156.3 billion (2015 est.)
GDP - real growth rate10.3% (2016 est.)
-2.4% (2015 est.)
-0.4% (2014 est.)
GDP - per capita (PPP)$16,500 (2016 est.)
$15,400 (2015 est.)
$16,200 (2014 est.)
note: data are in 2016 dollars
Gross national saving10.8% of GDP (2016 est.)
19.8% of GDP (2015 est.)
26.2% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 50.4%
government consumption: 18.8%
investment in fixed capital: 23.5%
investment in inventories: -4.5%
exports of goods and services: 39.7%
imports of goods and services: -27.9%
GDP - composition, by sector of originagriculture: 5.7%
industry: 45.1%
services: 49.3% (2016 est.)
Agriculture - productswheat, barley, rice, vegetables, dates, cotton; cattle, sheep, poultry
Industriespetroleum, chemicals, textiles, leather, construction materials, food processing, fertilizer, metal fabrication/processing
Industrial production growth rate7% (2016 est.)
Labor force8.9 million (2010 est.)
Labor force - by occupationagriculture: 21.6%
industry: 18.7%
services: 59.8% (2008 est.)
Unemployment rate16% (2012 est.)
15% (2010 est.)
Population below poverty line25% (2008 est.)
Household income or consumption by percentage sharelowest 10%: 3.6%
highest 10%: 25.7% (2007 est.)
Budgetrevenues: $52.43 billion
expenditures: $77.87 billion (2016 est.)
Taxes and other revenues33.5% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-16.3% of GDP (2016 est.)
Fiscal yearcalendar year
Inflation rate (consumer prices)2.4% (2016 est.)
1.4% (2015 est.)
Central bank discount rate6% (December 2012)
6% (December 2011)
Commercial bank prime lending rate4.5% (31 December 2016 est.)
6% (31 December 2015 est.)
Stock of narrow money$54.53 billion (31 December 2016 est.)
$55.36 billion (31 December 2015 est.)
Stock of broad money$80.83 billion (31 December 2015 est.)
$78.65 billion (31 December 2014 est.)
Stock of domestic credit$3.191 million (31 December 2016 est.)
$1.773 million (31 December 2015 est.)
Market value of publicly traded shares$4 billion (9 December 2011)
$2.6 billion (31 July 2010)
$2 billion (31 July 2009 est.)
Current account balance-$16.87 billion (2016 est.)
-$11.84 billion (2015 est.)
Exports$44.67 billion (2016 est.)
$54.67 billion (2015 est.)
Exports - commoditiescrude oil 99%, crude materials excluding fuels, food, live animals
Exports - partnersChina 22.6%, India 21.1%, South Korea 11.2%, US 7.8%, Italy 6.7%, Greece 6% (2015)
Imports$43.27 billion (2016 est.)
$43.84 billion (2015 est.)
Imports - commoditiesfood, medicine, manufactures
Imports - partnersTurkey 20.7%, Syria 19.6%, China 19.2%, US 4.8%, Russia 4.4% (2015)
Reserves of foreign exchange and gold$44.15 billion (31 December 2016 est.)
$54.06 billion (31 December 2015 est.)
Debt - external$68.01 billion (31 December 2016 est.)
$60.28 billion (31 December 2015 est.)
Exchange ratesIraqi dinars (IQD) per US dollar -
1,179.3 (2016 est.)
1,167.63 (2015 est.)
1,167.63 (2014 est.)
1,213.72 (2013 est.)
1,166.17 (2012 est.)