Economics

Agriculture

Traditionally, agriculture constitutes 1/4 to 1/3 of Iraq’s GDP. Iraq has a large amount of arable land in the north and northeast and about 1/8 of Iraq is arable, while 1/10 is permanent pasture.  The most significant crops include: barley, wheat, rice, vegetables, corn (maize), millet, sugarcane, sugar beets, oil seeds, fruit, fodder, tobacco, and cotton. Iraq was formerly the largest producer of dates, and is approaching increased production after a decline during the Iran-Iraq War. Animal husbandry is widely practiced, particularly among the Kurds of the northeast, producing milk, meat, hides, and wool.

Petroleum and Natural Gas

Oil was discovered in Iraq in 1927. Iraq has the world’s second largest petroleum reserves and it is also its most valuable mineral. Oil contributes the largest portion of the GDP and constitutes most of Iraq’s foreign exchange.

In addition, Iraq is though to have man untapped resources and minerals, such as salt, gypsum, and stone. Iraq is thought to have the largest sulfur reserves.

Finance

All banks and insurance companies were nationalized in 1964. The Central Bank of Iraq (founded in 1947 and one of the first central banks in the Arab world) has the sole right to issue the dinar, the national currency. The Rafidain Bank (1941) is the oldest commercial bank, but in 1988 the state founded a second commercial bank, the Rashid (Rasheed) Bank. There are also three state-owned specialized banks: the Agricultural Co-operative Bank (1936), the Industrial Bank (1940), and the Real Estate Bank (1949). Beginning in 1991 the government authorized private banks to operate, although only under the strict supervision of the central bank. The Baghdad Stock Exchange opened in 1992.

Facts and Statistics

  • Nominal GDP (2009 est.): $65.8 billion.
  • Nominal GDP per capita (2009 est., PPP): $2,108.
  • GDP real growth rate (2009 est.): 4.0%.
  • Rate of inflation (2009 est.): -4.4%.
  • Unemployment rate (2008 official): 12% to 18%.
  • Budget (FY 2010): Revenues–$52.8 billion; expenditures–$72.4 billion.
  • Public debt (Dec. 2008 est.): $46 billion to $87 billion.
  • Natural resources: Oil, natural gas, phosphates, sulfur.
  • Agriculture: Products–wheat, barley, rice, corn, chickpeas, beans, dates, cotton, sunflowers, cattle, sheep, and chickens.
  • Industry: Types–petroleum, chemicals, textiles, construction materials, food processing, fertilizer, metal fabrication/processing.
  • Trade: Exports (2009 est.)–$39.3 billion; export commodities–crude oil, crude materials excluding fuels, food and live animals. Export partners (2009)–U.S. 27.6%, India 14.5%, Italy 10.1%, South Korea 8.6%, Taiwan 5.6%, China 4.2%, Netherlands 4.1%, Japan 4.0%. Imports (2009 est.)–$41.3 billion; import commodities–food, medicine, manufactured goods. Import partners (2009): Turkey 25.0%, Syria 17.4%, U.S. 8.7%, China 6.8%, Jordan 4.2%, Italy 4.0%, Germany 4.0%.

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