Iraq Economic Profile, Iraqi Economy, Iraq's Economy
Abstract:
This paper aims to depict the picture of Iraq's economy based on the pre and post war scenarios. Mainly, the economy of Iraq depends largely on oil and agricultural sectors. After 1990, the country had gone through some tough situations, for which the economic growth decelerated. The war against Iran also had a bad effect on the country's economy. The economy of the Republic of Iraq, normally known as Iraq, is primarily based on oil export business. In fact, 95% of the country's foreign exchange income comes from the petroleum sector. Although Iraq witnessed a loss of 100 billion dollars due to the war against Iran in the 80s, but after that, its economic conditions improved because of the increasing oil export business. The new Iraqi Dinar was introduced in 2003 as the official currency by replacing the old Iraqi Dinar whose value was 1950 Dinar per US dollar. During 2006-2007, the value of the currency has increased. However, we will discuss below the various sectors of the economy of Iraq.
Agricultural Sector: In Iraq, only 50% to 60% of the total farmable land is taken under cultivation. Production has decreased due to the adoption of some inconsistent policies in the period of Saddam Hussein, but still Iraq is a food importer. The government allowed the intervention of the private firms in that sector. Moreover, the women have been encouraged by the government to work in this sector and many foreign workers are imported. In 2004, the maximum output from the agricultural sector was generated by barley, rice, cotton, wheat and dates.
Energy Sector: Energy sector has been playing a dominant role in the economy of Iraq. In fact, Iraq belongs to the top three oil rich countries around the globe and most of its revenue comes from the energy sector. In 2004, Iraq achieved a power generating capacity of 5000 megawatts. However, during 2004-2005, because of the unstable political situations in the country the growth in the oil and gas sector did not get the right pace.
Service Sector:During the 90s, seventeen private banks had been formed and some private depositors emerged. But those banks were restricted for domestic transactions only. In 2003, the Coalition Provisional Authority had done away with those restrictions and made the Central Bank of Iraq free from the government's control. In 2004, three foreign banks were allowed to enter into Iraq. Since during 2004-2005, Iraq had been suffering from political insurgency, therefore the security industry played a significant role in the service sector. The tourism industry of Iraq is also an important part of the country's service sector.
Human Resource and Development Sector: Iraq's labor force in 2002 was almost 6.8 million. However, the rate of unemployment increased during the last two or three years. In 2004, the amount of minimum wages per month was 70 dollar.
Important Statistics:
2001 Gross National Product: 59 billion US Dollars.
2001 Growth in Gross Domestic Product: -5.7%.
Iraq's Trade balance: Deficit of 68%
2001 Foreign debts per capita: 3,900 US Dollars.
Gross National Product per capita: 2,300 US Dolars.
Foreign debts per Gross National Product: 330%
2001, Annual Rate of Inflation: 60%
Iraq's Import partners: Australia(22%), Russia(6%), France(22%), China(6%).
Rate Of Employment: 40%
2002, percentage of Population below poverty line: 40%
Iraq's Export partners: France(10%), USA(46%), Spain(9%), Italy(12%).
Conclusion: Before 1990, the economy of Iraq was growing faster compared to the other countries of the Arab world. The standard of education and health care was relatively high. During the 80s, the gross domestic product of Iraq went very high by reason of the oil business. But after 1990, the economic conditions declined continually, mainly because of war. In 2000, the life expectancy in this country came down to 61 years, which was very low in comparison with the other middle east countries. However, the rebuilding process is still going on through several reforms and the United Nation's Development Programs.
Agricultural Sector: In Iraq, only 50% to 60% of the total farmable land is taken under cultivation. Production has decreased due to the adoption of some inconsistent policies in the period of Saddam Hussein, but still Iraq is a food importer. The government allowed the intervention of the private firms in that sector. Moreover, the women have been encouraged by the government to work in this sector and many foreign workers are imported. In 2004, the maximum output from the agricultural sector was generated by barley, rice, cotton, wheat and dates.
Energy Sector: Energy sector has been playing a dominant role in the economy of Iraq. In fact, Iraq belongs to the top three oil rich countries around the globe and most of its revenue comes from the energy sector. In 2004, Iraq achieved a power generating capacity of 5000 megawatts. However, during 2004-2005, because of the unstable political situations in the country the growth in the oil and gas sector did not get the right pace.
Service Sector:During the 90s, seventeen private banks had been formed and some private depositors emerged. But those banks were restricted for domestic transactions only. In 2003, the Coalition Provisional Authority had done away with those restrictions and made the Central Bank of Iraq free from the government's control. In 2004, three foreign banks were allowed to enter into Iraq. Since during 2004-2005, Iraq had been suffering from political insurgency, therefore the security industry played a significant role in the service sector. The tourism industry of Iraq is also an important part of the country's service sector.
Human Resource and Development Sector: Iraq's labor force in 2002 was almost 6.8 million. However, the rate of unemployment increased during the last two or three years. In 2004, the amount of minimum wages per month was 70 dollar.
Important Statistics:
2001 Gross National Product: 59 billion US Dollars.
2001 Growth in Gross Domestic Product: -5.7%.
Iraq's Trade balance: Deficit of 68%
2001 Foreign debts per capita: 3,900 US Dollars.
Gross National Product per capita: 2,300 US Dolars.
Foreign debts per Gross National Product: 330%
2001, Annual Rate of Inflation: 60%
Iraq's Import partners: Australia(22%), Russia(6%), France(22%), China(6%).
Rate Of Employment: 40%
2002, percentage of Population below poverty line: 40%
Iraq's Export partners: France(10%), USA(46%), Spain(9%), Italy(12%).
Conclusion: Before 1990, the economy of Iraq was growing faster compared to the other countries of the Arab world. The standard of education and health care was relatively high. During the 80s, the gross domestic product of Iraq went very high by reason of the oil business. But after 1990, the economic conditions declined continually, mainly because of war. In 2000, the life expectancy in this country came down to 61 years, which was very low in comparison with the other middle east countries. However, the rebuilding process is still going on through several reforms and the United Nation's Development Programs.
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