Overview: The Bathist regime engages in extensive central planning and management of industrial production and foreign trade while leaving some small-scale industry and services and most agriculture to private enterprise. The economy has been dominated by the oil sector, which has 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 and to borrow heavily and later reschedule foreign debt payments. After the end of hostilities in 1988, oil exports gradually increased with the construction of new pipelines and restoration of damaged facilities. Agricultural development remained hampered by labor shortages, salinization, and dislocations caused by previous land reform and collectivization programs. The industrial sector, although accorded high priority by the government, also was under financial constraints. Iraq's seizure of Kuwait in August 1990, subsequent international economic embargoes, and military actions by an international coalition beginning in January 1991 drastically changed the economic picture. Oil exports were cut to near zero, and industrial and transportation facilities severely damaged.

GNP: $35 billion, per capita $1,940; real growth rate 5% (1989 est.)

Inflation rate (consumer prices): 30-40% (1989 est.)

Unemployment rate: less than 5% (1989 est.)

Budget: revenues $NA billion; expenditures $35 billion, including capital expenditures of NA (1989)

Exports: $12.1 billion (f.o.b., 1989); commodities--crude oil and refined products, fertilizer, sulfur; partners--US, Brazil, Turkey, Japan, France, Italy, USSR (1989)

Imports: $10.3 billion (c.i.f., 1989); commodities--manufactures, food; partners--US, FRG, Turkey, UK, Romania, Japan, France (1989)

External debt: $40 billion (1989 est.), excluding debt to Arab Gulf states

Industrial production: NA%; manufacturing accounts for 10% of GDP (1987)

Electricity: 9,902,000 kW capacity; 20,000 million kWh produced, 1,110 kWh per capita (1989)

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

Agriculture: accounts for 11% of GNP but 30% of labor force; principal products--wheat, barley, rice, vegetables, dates, other fruit, cotton, wool; livestock--cattle, sheep; not self-sufficient in food output

Economic aid: US commitments, including Ex-Im (FY70-80), $3 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-88), $627 million; OPEC bilateral aid (1980-90), more than $30 billion; Communist countries (1970-89), $3.9 billion

Currency: Iraqi dinar (plural--dinars); 1 Iraqi dinar (ID) = 1,000 fils

Exchange rates: Iraqi dinars (ID) per US$1--0.3109 (fixed rate since 1982)

Fiscal year: calendar year

NOTE: The information regarding Iraq on this page is re-published from the 1991 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iraq Economy 1991 information contained here. All suggestions for corrections of any errors about Iraq Economy 1991 should be addressed to the CIA.