View source for Economy of Iraq

{{Short description|none}}
{{Use dmy dates|date=September 2019}}
{{Infobox economy
| country = Iraq
| image = Baghdad Red zone.jpg
| image_size = 310px
| caption = [[Baghdad]] — the capital
| currency = [[Iraqi dinar|Dinar]] (IQD)
| year = [[Calendar year]]
| organs = [[OPEC]]
| group = {{plainlist|
*[[Developing country|Developing/Emerging]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019 |archive-date=10 October 2020 |archive-url=https://web.archive.org/web/20201010203013/https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2F+Emerging+market+and+developing+economies |url-status=live }}</ref>
*Upper-middle income economy<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019 |archive-date=28 October 2019 |archive-url=https://web.archive.org/web/20191028223324/https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |url-status=live }}</ref>}}
| population = {{IncreaseNeutral}} 46,418,421 (2024)<ref>{{cite web |url=https://worldpopulationreview.com/countries/iraq-population |title=Iraq Population |publisher=[[World Bank]] |website=worldpopulationreview.com |access-date=2024-01-27 |archive-date=13 April 2024 |archive-url=https://web.archive.org/web/20240413191251/https://worldpopulationreview.com/countries/iraq-population |url-status=live }}</ref>
| gdp = {{plainlist|
*{{Increase}} $315.020 billion ([[Nominal GDP|Nominal]], 2025)<ref name="IMFWEOIQ">{{Cite web |title=World Economic Outlook Database, April 2025 Edition |url=https://www.imf.org/external/datamapper/profile/IRQ |access-date=2025-04-22 |website=IMF.org |publisher=[[International Monetary Fund]] |language=en}}</ref>
*{{increase}} $690.902 billion ([[Purchasing power parity|PPP]], 2025)<ref name="IMFWEOIQ"/>}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|51th (nominal, 2025)]]
*[[List of countries by GDP (PPP)|44th (PPP, 2025)]]}}
| growth = {{plainlist|
*−2.9%&nbsp;(2023)<br />0.1%&nbsp;(2024e)<br />4.1%&nbsp;(2025f)<ref name="IMFWEOIQ"/>}}
| per capita = {{plainlist|
*{{Increase}} $5,968 (2025) <ref name="IMFWEOIQ"/>
*{{Increase}} $15,178 ([[Purchasing power parity|PPP]], 2025 est.)<ref name="IMFWEOIQ"/>}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|113th (nominal, 2025)]]
*[[List of countries by GDP (PPP) per capita|110th (PPP, 2025)]]}}
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 2.8%
*[[Secondary sector of the economy|industry]]: 55.6%
*[[Tertiary sector of the economy|services]]: 42.3%
*(2023 est.)<ref name="CIAWFIZ"/>}}
| components = 
| inflation = 3.2% (2024)<ref name="IMFWEOIQ"/>
| poverty = {{plainlist|
*2.82% (2024)<ref name="CIAWFIZ">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/iraq/ |title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=3 November 2017 |archive-date=8 March 2023 |archive-url=https://web.archive.org/web/20230308160827/https://www.cia.gov/the-world-factbook/countries/iraq/ |url-status=live }}.{{cite web  | url= https://www.statista.com/outlook/co/socioeconomic-indicators/iraq#:~:text=The%20number%20of%20households%20in,amount%20to%202.82%25%20in%202024. | title=Socioeconomic Indicators - Iraq &#124; Statista Market Forecast }} </ref>
*15% on less than $9.50/day (2024)<ref>{{cite web |url= https://data.worldbank.org/indicator/SI.POV.UMIC?locations=IQ&most_recent_value_desc=true |title=Iraq |publisher=[[World Bank]] |website=data.worldbank.org |access-date=3 November 2019 |archive-date=15 November 2022 |archive-url=https://web.archive.org/web/20221115080152/https://data.worldbank.org/indicator/SI.POV.UMIC?locations=IQ&most_recent_value_desc=true |url-status=live }}</ref>}}
| gini = 29.8 {{color|green|low}} (2023)<ref>{{cite web |url=https://data.worldbank.org/indicator/SI.POV.GINI?locations=IQ&most_recent_value_desc=true |title=GINI index (World Bank estimate) - Iraq |publisher=[[World Bank]] |website=data.worldbank.org |access-date=3 November 2019 |archive-date=23 December 2022 |archive-url=https://web.archive.org/web/20221223050517/https://data.worldbank.org/indicator/SI.POV.GINI?locations=IQ&most_recent_value_desc=true |url-status=live }}</ref>
| hdi = {{plainlist|
*{{Increase}} 0.695 {{color|orange|medium}} (2023)<ref>{{cite web |url=https://hdr.undp.org/data-center/specific-country-data#/countries/IRQ
|title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=2025-06-05 |archive-date=26 March 2024 |archive-url=https://archive.today/20240326141520/https://hdr.undp.org/data-center/country-insights%23/ranks |url-status=live }}</ref> ([[List of countries by Human Development Index|105th]])
*0.687 [[List of countries by inequality-adjusted HDI|IHDI]] (2022)<ref>{{cite web |url=http://hdr.undp.org/en/content/table-3-inequality-adjusted-human-development-index-ihdi |title=Inequality-adjusted Human Development Index (IHDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=11 December 2019 |archive-date=12 December 2020 |archive-url=https://web.archive.org/web/20201212055527/http://hdr.undp.org/en/content/table-3-inequality-adjusted-human-development-index-ihdi |url-status=live }}</ref>}}
| labor = {{plainlist|
*{{increase}} 11,744,262 (2023)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=IQ&most_recent_value_desc=true |title=Labor force, total - Iraq |publisher=[[World Bank]] |website=data.worldbank.org |access-date=3 November 2019 |archive-date=15 November 2022 |archive-url=https://web.archive.org/web/20221115080204/https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=IQ&most_recent_value_desc=true |url-status=live }}</ref>
*{{decrease}} 33.2% employment rate (2021)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=IQ&most_recent_value_desc=true |title=Employment to population ratio, 15+, total (%) (national estimate) - Iraq |publisher=[[World Bank]] |website=data.worldbank.org |access-date=3 November 2019 |archive-date=15 November 2022 |archive-url=https://web.archive.org/web/20221115083150/https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=IQ&most_recent_value_desc=true |url-status=live }}</ref>}}
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 22.6%
*[[Secondary sector of the economy|industry]]: 28.7%
*[[Tertiary sector of the economy|services]]: 50.8%
*(2008 est.)<ref name="CIAWFIZ"/>}}
| unemployment = {{increaseNegative}} 13% (2025)<ref>{{cite web |url=https://www.ina.iq/235260--13-.html#:~:text=%D8%A3%D8%B9%D9%84%D9%86%D8%AA%2520%D9%88%D8%B2%D8%A7%D8%B1%D8%A9%2520%D8%A7%D9%84%D8%AA%D8%AE%D8%B7%D9%8A%D8%B7%D8%8C%2520%D8%A7%D9%84%D9%8A%D9%88%D9%85%2520%D8%A7%D9%84%D8%AE%D9%85%D9%8A%D8%B3,%D8%AA%D9%86%D9%81%D9%8A%D8%B0%2520%D8%A7%D9%84%D9%85%D8%B4%D8%A7%D8%B1%D9%8A%D8%B9%2520%D9%88%D8%AA%D9%88%D9%81%D9%8A%D8%B1%2520%D9%81%D8%B1%D8%B5%2520%D8%A7%D9%84%D8%B9%D9%85%D9%84.|title=التخطيط تعلن انخفاض معدل البطالة إلى 13 بالمئة |publisher=Iraqi News Agency|language=ar}}</ref>
| industries = [[petroleum]], [[chemicals]], [[textiles]], [[leather]], construction materials, food processing, [[fertilizer]], metal fabrication/processing
| exports = {{increase}} $127.079 billion (2023)
| export-goods = [[crude oil]] 92%, crude materials excluding fuels, food and live animals
| export-partners = {{plainlist|
*{{flag|India}} 32%
*{{flag|China}} 28%
*{{flag|United States}} 8%
*{{flag|South Korea}} 7%
*{{flag|Greece}} 5% (2022)<ref name="CIAWFIZ"/>}}
| imports = {{increase}} $69.162 billion (2022 est.)<ref name="CIAWFIZ"/>
| import-goods = [[food]], [[medicine]], manufactures
| import-partners = {{plainlist|
*{{flag|United Arab Emirates}} 32%
*{{flag|China}} 21%
*{{flag|Turkey}} 20%
*{{flag|India}} 4%
*{{flag|South Korea}} 2% (2022)<ref name="CIAWFIZ"/>}}
| current account = {{increase}} $58.01 billion (2022)<ref name="CIAWFIZ"/>
| FDI = {{plainlist|
*{{increase}} $112.233 billion (2023 est.)<ref name="CIAWFIZ"/>
*{{increase}} Abroad: $2.109 billion (2015 est.)<ref name="CIAWFIZ" />
| gross external debt = {{decreasePositive}} $15.065 billion (2022)<ref name="CIAWFIZ"/>}}
| debt = {{DecreasePositive}} 45.9% of GDP (2024)<ref name="IMFWEOIQ"/>
| revenue = 90.204 billion (2019)<ref name="CIAWFIZ"/>
| expenses = 64.512 billion (2019)<ref name="CIAWFIZ"/>
| balance = −3.056% (of GDP) (2021 est.)
| aid = 
| credit = B− (Fitch, January 2022)<ref>{{cite web |title=Iraq Sovereign credit ratings - data, chart |url=https://www.theglobaleconomy.com/Iraq/credit_rating/ |website=TheGlobalEconomy.com |access-date=14 February 2022 |language=en |archive-date=15 November 2022 |archive-url=https://web.archive.org/web/20221115074641/https://www.theglobaleconomy.com/Iraq/credit_rating/ |url-status=live }}</ref>
| reserves = {{increasePositive}} $115 billion (February 2023) <ref>{{cite web|url=https://www.https/|title=Info|website=www.ina.iq|access-date=18 February 2023|archive-date=19 August 2013|archive-url=https://web.archive.org/web/20130819141428/http://https/|url-status=dead}}</ref> ([[List of countries by foreign-exchange reserves|24th]])
| spelling = 
}}

The '''economy of [[Iraq]]''' is dominated by the oil sector.<ref>{{Cite web |title=Non-oil revenues surge in Iraq, oil dependency falls below 90% |url=https://shafaq.com/en/Economy/Non-oil-revenues-surge-in-Iraq-oil-dependency-falls-below-90 |access-date=2024-11-08 |website=Shafaq News |language=en}}</ref> The [[IFAD]] has classified Iraq as an oil-rich upper middle income country. In 2025, the economy is estimated to be at $690 billion (GDP PPP). making it as the fifth largest economy in the Arab world, seventh largest in the [[Middle East and North Africa]] and world's 51st largest.<ref>{{Cite web |last=Garcia |first=Anthon |date=2024-01-22 |title=10 largest economies in MENA |url=https://economymiddleeast.com/biggest-economies-mena/ |access-date=2025-10-17 |website=Economy Middle East |language=en-US}}</ref><ref>{{Cite web |last=Ventura |first=Luca |date=2025-06-18 |title=World's Most Peaceful Country 2024 Global Peace Index |url=https://gfmag.com/data/most-peaceful-countries/ |access-date=2025-10-17 |website=Global Finance Magazine |language=en-US}}</ref> It is one of the top five Arab countries with gold reserves and 30th globally.<ref>{{Cite web |last=Al-Samarraie |first=Jawad |date=2025-01-11 |title=Iraq among the top five Arab nations in gold reserves |url=https://www.iraqinews.com/business/iraq-among-top-five-arab-gold-reserves/ |access-date=2025-10-17 |website=Iraqi News |language=en-US}}</ref><ref>{{Cite web |title=Iraq maintains the 30th rank among the world's top gold holders |url=https://shafaq.com/en/Economy/Iraq-maintains-the-30th-rank-among-the-world-s-top-gold-holders |access-date=2025-10-17 |website=Shafaq News |language=en}}</ref><ref>{{Cite web |last=sarahrudge |date=2025-06-25 |title=6 Countries with the Largest Crude Oil Reserves in the World |url=https://energy-oil-gas.com/news/6-countries-with-the-largest-crude-oil-reserves-in-the-world/ |access-date=2025-10-17 |website=Energy, Oil & Gas magazine |language=en-GB}}</ref><ref>{{Cite web |last=Al-Samarraie |first=Jawad |date=2024-10-21 |title=Iraq ranks 145th globally in innovation for 2025 |url=https://www.iraqinews.com/iraq/iraq-ranks-145th-globally-in-innovation-for-2025/ |access-date=2025-10-17 |website=Iraqi News |language=en-US}}</ref><ref>{{Cite web |title=Iraq placed fifth for startup investment in MENA |url=https://shafaq.com/en/Economy/Iraq-placed-fifth-for-startup-investment-in-MENA |access-date=2025-10-22 |website=Shafaq News |language=en}}</ref>

Iraq experienced economic growth by in the 1970s. Oil industry was nationalized in 1972, followed by a sharp increase in the price of petroleum. Revenue generated from the oil sector were utilized in development and expanding social services, which turned Iraq into a highly developed country. However, the Gulf War and subsequent sanctions drained the country economically. An oil-for-food program by the United Nation, allowed Iraq to sell oil in exchange of humanitarian goods for the civilian population. 

Gradually, the economic situation quite improved. Many countries resumed trade with Iraq and the government rebuilt large swaths of country after the war. However, the [[invasion of Iraq]] in 2003 and the [[Iraq War|war]] damaged much of the country's infrastructure. Although economy expanded rapidly due to privatization, it was interrupted by escalating war. Since 2022, under the leadership of Prime MInister [[Mohammed Shia' al-Sudani|Muhammad Shayya al-Sudani]], Iraq has seen a period of relative economic stability.<ref>{{Cite web |title=Iraq's economy: Old obstacles and new challenges |url=https://www.ispionline.it/en/publication/iraqs-economy-old-obstacles-and-new-challenges-121426 |access-date=2025-10-20 |website=ISPI |language=en-US}}</ref>

Iraq is traditionally an oil-rich state, with oil industry being the dominant sector. In 2024, it provided 89% of foreign exchange earning. Crude oil accounts between 92-99% of Iraq's total exports, followed by fruits, aluminum and dates. While import goods include foods, medicine and manufactured products such as ships, automobiles and consumer electronics. Major trade partners of Iraq are the [[United States]], [[China]], [[India]], [[Greece]], [[Turkey]] and the [[United Arab Emirates]]. Iraq has strong economic and trade ties with numerous countries, with large investments from China and Saudi Arabia. 

== History ==

=== Monarchy ===
In the early monarchy era, economic institutions developed slowly.<ref name=":3">{{Cite web |date=2003-06-03 |title=Iraq's economy: Past, present, future - Iraq {{!}} ReliefWeb |url=https://reliefweb.int/report/iraq/iraqs-economy-past-present-future |access-date=2025-10-20 |website=reliefweb.int |language=en}}</ref> The Iraqi economy was largely market-oriented, but based more on feudal and traditions rather than on modern principles. [[Faisal I|King Faisal]], the first king of Iraq, laid foundations for the modern Iraqi state.<ref name=":3" /> Under his rule, an oil pipeline was built between Kirkuk and Haifa.<ref name=":3" /> Then finance minister [[Sassoon Eskell]] was instrumental in forming Iraq's financial system and oil industry.<ref name=":3" />

A development board was established in 1950.<ref name=":3" /> The board regulated five-year plans that emphasized three priorities—agriculture, transportation and communication and construction.<ref name=":3" /> The agriculture part also included irrigation and flood control.<ref name=":3" /> The board was well-received by the commentators for using most of the country's oil income for capital investment and infrastructure development.<ref name=":3" /> It also received criticism for over-emphasizing agriculture and ignoring industry and human resources, which would have appealed to two increasingly important constituents—educated elites and workers.<ref name=":3" /> Neglecting these groups became one of the minor reasons which provoked the coup in 1958.<ref name=":3" />

=== Economic growth ===
During its [[modern history]], the oil sector has provided about 99.7% of foreign exchange earnings.<ref name=":0" /> Agrarian economy underwent rapid development following the [[14 July Revolution]] in 1958. It had become the third-largest economy in the [[Middle East]] by 1980. This occurred in part because of the [[Industrialisation|industrialization]] and infrastructure development initiatives led by [[Saddam Hussein]], which included [[irrigation]] projects, railway and highway construction, and [[rural electrification]].<ref name=":1">{{Cite web |title=Iraq - Economy |url=https://www.britannica.com/place/Iraq |url-status=live |archive-url=https://web.archive.org/web/20231009215514/https://www.britannica.com/place/Iraq |archive-date=9 October 2023 |access-date=2020-01-17 |website=Encyclopedia Britannica |language=en}}</ref> In the 1980s, financial problems caused by massive expenditures in the [[Iran–Iraq War|Iran-Iraq War]] and damage to oil export facilities by [[Iran]]'s military led the [[Ba'athist Iraq|government]] to implement [[austerity measures]], to borrow heavily, and to later reschedule foreign debt payments. 

Nominal GDP grew by 213% in the 1960s, 1325% in the 1970s, 2% in the 1980s, −47% in the 1990s, and 317% in 2000s.<ref>{{cite web |title=World Development Indicators - Google Public Data Explorer |url=http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_mktp_cd&idim=country:IRQ&dl=en&hl=en&q=gdp+iraq |url-status=live |archive-url=https://web.archive.org/web/20221216052846/http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_mktp_cd&idim=country:IRQ&dl=en&hl=en&q=gdp+iraq |archive-date=16 December 2022 |access-date=3 March 2015}}</ref> Real GDP per capita (measured in $1990 ) increased significantly during the 1950s, 60s and 70s, which can be explained by both higher oil production levels as well as oil prices, which famously peaked in the 1970s due to the [[OPEC|OPEC's]] oil embargo, causing the [[1973 oil crisis]]. In the following two decades, however, GDP per capita in Iraq dropped substantially because of multiple wars, namely the 1980-88 war with Iran, the 1990-1991 Gulf War.<ref>{{cite book |author=Baten, Jörg |title=A History of the Global Economy. From 1500 to the Present. |date=2016 |publisher=Cambridge University Press |isbn=9781107507180 |pages=231–232}}</ref>[[File:Historical economic growth of Iraq.jpg|thumb|Historical GDP per capita development|left]]
Before the outbreak of the war with Iran in September 1980, the economic outlook was positive. In 1979, oil production  reached a level of 560,000 m³ (3.5 million barrels) per day, and oil revenues were 21 billion dollars in 1979 and $27 billion in 1980 due to record oil prices. Iraq had amassed an estimated $35 billion in [[foreign exchange reserves]]. It was believed to have one of the best [[Education in Iraq|education]] and [[Healthcare in Iraq|health care systems]] in the [[Middle East]], and thousands of [[Migrant workers in the Gulf Cooperation Council region|migrant workers]] from [[Egypt]], [[Somali Democratic Republic|Somalia]], and the [[Indian subcontinent]] were employed in construction projects.<ref>{{Cite book|last=Chandrasekaran|first=Rajiv|url=http://archive.org/details/imperiallifeinem00chan|title=Imperial life in the emerald city : inside Iraq's green zone|date=2007|publisher=Vintage Books|others=Internet Archive|isbn=978-0-307-27883-8|location=New York}}</ref>
[[File:Inflation rate in Iraq (HY).png|left|thumb|Inflation rate in Iraq (HY)]]
The [[Iran–Iraq War]] and the [[1980s oil glut]] depleted Iraq's foreign exchange reserves, devastated its economy and left the country with a foreign debt of more than $40 billion. Iraq suffered economic losses of at least $80 billion from the war.<ref>{{cite web |author=Christopher Parker |author2=Pete W. Moore |name-list-style=amp |title=MER 243 - The War Economy of Iraq |url=http://www.merip.org/mer/mer243 |url-status=dead |archive-url=https://web.archive.org/web/20180412181846/http://www.merip.org/mer/mer243 |archive-date=2018-04-12 |website=Middle East Research and Information Project}}</ref> In 1988, the hostilities ended. Oil exports gradually increased with the construction of new pipelines and restoration of damaged facilities, but again underwent a sharp decline after the [[Gulf War|Persian Gulf War]]. 

A U.S government report in June 2003 states:<ref>{{Cite web |last=Tooze |first=Adam |date=2023-03-24 |title=Chartbook 204: Iraq's economic impasse twenty years after the invasion. |url=https://adamtooze.substack.com/p/chartbook-204-iraqs-economic-impasse |access-date=2025-10-20 |website=Chartbook}}</ref> <blockquote>In the 1980s, Iraq had one of the Arab world’s most advanced economies. Though buffeted by the strains of the [[Iran-Iraq war]], it had – besides petroleum -- a considerable industrial sector, a relatively well-developed transport system, and comparatively good infrastructure. Iraq had a relatively large middle class, per capita income levels comparable to [[Venezuela]], [[Trinidad and Tobago|Trinidad]] or [[South Korea|Korea]], one of the best educational systems in the Arab world, a well educated population and generally good standards of medical care.</blockquote>

=== Sanctions ===
Iraq's seizure of [[Invasion of Kuwait|Kuwait]] in August 1990, subsequent [[Iraq sanctions|international economic sanctions on Iraq]], and damage from military action by the international coalition beginning in January 1991, drastically reduced economic activity. The regime exacerbated shortages by supporting large military and internal security forces and by allocating resources to key supporters of the [[Arab Socialist Ba'ath Party – Iraq Region|ruling Party]]. GDP dropped to one-fourth of the country's 1980 [[gross domestic product|GDP]] and continued to decline under the postwar [[Sanctions against Iraq|international sanctions]], until receiving aid from the [[Oil-for-Food Programme|U.N. Oil-for-Food Programme]] in 1997.<ref>{{cite web |title=What We Do |url=http://earthtrends.wri.org/text/economics-business/variable-638.html |url-status=dead |archive-url=https://web.archive.org/web/20090220134324/http://earthtrends.wri.org/text/economics-business/variable-638.html |archive-date=20 February 2009 |access-date=3 March 2015}}</ref><ref name=":1" />

The implementation of the [[United Nations|UN]]'s [[Oil for Food program]] in December 1996 helped improve economic conditions. For the first six six-month phases of the program, Iraq was allowed to export increasing amounts of oil in exchange for food, medicine, and other humanitarian goods. In December 1999, the [[United Nations Security Council|UN Security Council]] authorized Iraq to export as much oil as required to meet humanitarian needs. Per capita, food imports increased substantially, while medical supplies and health care services steadily improved, though per capita economic production and living standards were still well below their prewar level.

Iraq changed its oil [[reserve currency]] from the [[United States dollar|U.S. dollar]] to the [[euro]] in 2000. However, 28% of Iraq's export revenues under the program were deducted to meet UN Compensation Fund and UN administrative expenses. The drop in [[Gross Domestic Product|GDP]] in 2001 was largely the result of the [[Early 2000s recession|global economic slowdown]] and lower oil prices.

Iraq experienced a modest growth by 2000, when the government attempted to make improvements and reorganizations in the economic system. Oil exports gradually increased as new pipelines were constructed and damaged facilities were restored.

=== After the invasion of Iraq in 2003 ===
{{main|Economic reform of Iraq}}

The removal of sanctions on 24 May 2003 and [[World oil market chronology from 2003|rising oil prices]] in the mid-to-late 2000s led to a doubling in oil production from a low of 1.3 mbpd during the turbulence of 2003 to a high of 2.6 mbpd in 2011.<ref>{{cite web|url=http://www.indexmundi.com/energy.aspx?country=iq&product=oil&graph=production|title=Iraq Crude Oil Production by Year|access-date=3 March 2015|archive-date=14 May 2016|archive-url=https://web.archive.org/web/20160514131356/http://www.indexmundi.com/energy.aspx?country=iq&product=oil&graph=production|url-status=live}}</ref> Furthermore, reduced inflation<ref>{{cite web|url=http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG/countries/IQ?display=default|title=Inflation, consumer prices (annual %)|access-date=3 March 2015|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304004122/http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG/countries/IQ?display=default|url-status=live}}</ref> and violence<ref>{{cite web|url=https://blogs.law.harvard.edu/mesh/2009/04/measuring-iraq/|title=» Measuring Iraq Middle East Strategy at Harvard|access-date=3 March 2015|archive-date=13 September 2015|archive-url=https://web.archive.org/web/20150913002025/http://blogs.law.harvard.edu/mesh/2009/04/measuring-iraq/|url-status=live}}</ref> since 2007 have translated to real increases in living standards for Iraqis. One of the key economic challenges was Iraq's immense foreign debt, estimated at $130 billion.<ref>{{Cite journal|last=Hinrichsen|first=Simon|date=2021|title=The Iraq sovereign debt restructuring|url=https://doi.org/10.1093/cmlj/kmaa031|journal=Capital Markets Law Journal|volume=16|issue=1|pages=95–114|doi=10.1093/cmlj/kmaa031|issn=1750-7227|access-date=12 August 2021|archive-date=10 February 2023|archive-url=https://web.archive.org/web/20230210011629/https://doi.org/10.1093%2Fcmlj%2Fkmaa031|url-status=live|url-access=subscription}}</ref>  Although some of this debt was derived from normal export contracts that Iraq had failed to pay for, some was a result of military and financial support during Iraq's war with Iran.<ref>{{Cite web|url=https://www.nytimes.com/cfr/international/slot3_110703.html|title=Q&A: Iraq's Debt|website=[[The New York Times]]|access-date=2018-01-24|archive-date=25 January 2018|archive-url=https://web.archive.org/web/20180125020120/http://www.nytimes.com/cfr/international/slot3_110703.html|url-status=live}}</ref>

The [[Coalition Provisional Authority]] made efforts to modernize the economy after the 2003 [[2003 invasion of Iraq|U.S.-led invasion]], through [[privatization]] and reducing the country's foreign debt. As a result Iraq's economy expanded rapidly during this time, though growth was stunted by [[Iraqi insurgency (2003–2006)|the insurgency]], civil war, economic mismanagement, and oil shortages caused by outdated technology.<ref name=":1" /> Since mid-2009, oil export earnings have returned to levels seen before [[Iraq War#2010: US drawdown and Operation New Dawn|Operation New Dawn]]. Government revenues rebounded, along with global oil prices. In 2011, Iraq  increased oil exports above their then-current level of {{convert|1900000|oilbbl|m3|abbr=on}} per day as a result of new contracts with international oil companies. The export was thought likely to fall short of the {{convert|2400000|oilbbl|m3}} per day forecasting in the budget. Iraq's  contracts with major oil companies had the potential to greatly expand oil revenues, but Iraq  needed to upgrade its oil processing, pipeline, and export infrastructure to enable these deals to reach their potential.

An improved security environment and an initial wave of foreign investment  helped to spur economic activity, particularly in the energy, construction, and retail sectors. Broader economic improvement, long-term fiscal health, and sustained increases in the [[standard of living]] still depended on the government passing major policy reforms and the continued development of Iraq's massive oil reserves. Although foreign investors viewed Iraq with increasing interest in 2010, most were still hampered by difficulties acquiring land for projects and other regulatory impediments.

The Jubilee Iraq campaign<ref>{{cite web |url=http://www.jubileeiraq.org/odiousdebt.htm |title=Jubilee Iraq |access-date=3 March 2015 |url-status=dead |archive-url=https://web.archive.org/web/20110306000652/http://www.jubileeiraq.org/odiousdebt.htm |archive-date=6 March 2011}}</ref> argued that much of these debts were [[odious debt|odious]] (illegitimate). However, as the concept of [[odious debt]] is not accepted,<ref>Mitu Gulati, Duke University School of Law; Ugo Panizza, The Graduate Institute Geneva and CEPR. The Hausmann-Gorky Effect. Working Paper No. HEIDWP02-2018. Graduate Institute of International and Development Studies, International Economics Department.</ref> trying to deal with the debt on those terms would have embroiled Iraq in legal disputes for years. Iraq decided to deal with its debt more pragmatically and approached the [[Paris Club]] of official creditors.

In a December 2006 ''[[Newsweek International]]'' article, a study by [[Global Insight]] in [[London]] was reported to show "that [[Iraqi civil war (2006–2008)|Civil war]] or not, Iraq has an economy, and—mother of all surprises—it's doing remarkably well. Real estate is booming. Construction, retail and wholesale trade sectors are healthy, too, according to [the report]. The [[United States Chamber of Commerce|U.S. Chamber of Commerce]] reports 34,000 registered companies in Iraq,{{When|date=October 2024|reason=Which year?}} up from 8,000 three years ago. Sales of secondhand cars, televisions and mobile phones have all risen sharply. Estimates vary, but one from Global Insight puts GDP growth at 17 per cent last year and projects 13 per cent for 2006. The World Bank has it lower: at 4 per cent this year. But, given all the attention paid to deteriorating security, the startling fact is that Iraq is growing at all."<ref>{{cite news | url=http://www.thedailybeast.com/newsweek/2006/12/24/blood-and-money.html | title=Blood and Money: In what might be called the mother of all surprises, Iraq's economy is growing strong, even booming in places | publisher=Newsweek International (In The Daily Beast) | author=Silvia Spring | date=2006-12-24 | access-date=21 November 2011 | archive-date=6 May 2012 | archive-url=https://web.archive.org/web/20120506055231/http://www.thedailybeast.com/newsweek/2006/12/24/blood-and-money.html | url-status=live }}</ref>

== Industry ==
{{More citations needed|section|date=November 2023}}
{{Cleanup|section|reason=”Industry” section seems out of place and potentially irrelevant/redundant|date=November 2023}}
[[File:Cement factory samawa.JPG|thumb|A cement factory in Samawah]]
Since 1974, after the government took direct control of Iraq’s largest private oil production operations, Mosul Oil and Basra Oil, most of Iraq's manufacturing activity has been closely connected to the [[oil industry]].{{citation needed|date=January 2024}} The major industries in that category have been petroleum refining and the manufacture of chemicals and fertilizers. Before 2003, diversification was hindered by limitations on [[privatization]] and the effects of the international sanctions of the 1990s. Since 2003, security problems have blocked efforts to establish new enterprises. The [[Construction|construction industry]] is an exception; in 2000 [[cement]] was the only major industrial product not based on [[hydrocarbon]]s. The construction industry has profited from the need to rebuild after Iraq's several wars. In the 1990s, the industry benefited from government funding of extensive infrastructure and housing projects and elaborate palace complexes.

=== Automobile industry ===
Iraq has a growing automotive industry, which is mostly concentrated in [[Baghdad Governorate|Baghdad]], [[Babylon Governorate|Babylon]] and [[Erbil Governorate|Erbil]].<ref>{{Cite web |last=ltd |first=Research and Markets |title=Iraq Automotive Market, Size, Share, Outlook and Growth Opportunities 2022-2030 |url=https://www.researchandmarkets.com/reports/5713281/iraq-automotive-market-size-share-outlook-and |access-date=2025-10-22 |website=www.researchandmarkets.com |language=english}}</ref> According to the prime minister's economic advisor Mazhar Mohammed Salih, there are 9 million registered vehicles in Iraq.<ref name=":5">{{Cite web |last=الخيام |first=فارس |title=استراتيجية لتطوير قطاع السيارات الصديقة للبيئة في العراق |url=https://www.aljazeera.net/ebusiness/2025/9/8/%d8%b5%d9%86%d8%b9-%d9%81%d9%8a-%d8%a7%d9%84%d8%b9%d8%b1%d8%a7%d9%82-%d8%a5%d8%b3%d8%aa%d8%b1%d8%a7%d8%aa%d9%8a%d8%ac%d9%8a%d8%a9-%d9%84%d8%aa%d8%b7%d9%88%d9%8a%d8%b1-%d9%82%d8%b7%d8%a7%d8%b9 |access-date=2025-10-22 |website=الجزيرة نت |language=ar}}</ref> Iraq imports approximately 200,000 cars annually from international companies, most notably [[Automotive industry in Iran|Iranian]], [[European Automobile Manufacturers Association|European]], [[Automotive industry in Japan|Japanese]], [[Korean Automobile|Korean]], [[Automotive industry in China|Chinese]], and [[Automotive industry in the United States|American]] manufacturers.<ref name=":5" /> He has emphasized that the presence of production facilities for international companies in Iraq would reduce the percentage of car imports from abroad by approximately 10%.<ref name=":5" />  

Al-Sadeq Group manages numerous automotive manufacturing plants across the country, mostly concentrated around the Babylon governorate.<ref name=":6">{{Cite web |title=Cars & Trucks Factories – ALSADEQ GROUP |url=https://alsadeq-group.com/factories/ |archive-url=http://web.archive.org/web/20250514071323/https://alsadeq-group.com/factories/ |archive-date=2025-05-14 |access-date=2025-10-22 |website=alsadeq-group.com |language=en-GB}}</ref> The brands include [[Chery]], [[FAW Group]] and [[Renault Trucks]], with an upcoming factory for [[Bestune]].<ref name=":6" /> The Chery facility in Iraq covers an area of {{Convert|30000|m2|acre}}, manufacture passenger cars having annual production capacity of 30,000 cars and employ 750 people directly and 5,000 people directly.<ref name=":6" /> It has also activated separate battery, tire, oil and plastic factory, which would act as ancillaries.<ref name=":6" /> Al-Sadeq's factory for [[FAW Group]] in the Babylon governorate spread across an area of {{Convert|11000|m2|acre}}, manufacturing passenger cars with an annual capacity of 25,000 cars.<ref name=":6" /> Al-Sadeq also operates an assembly for [[Renault Trucks]] in Iraq, which has an assembling capacity of 10 trucks daily.<ref name=":6" /> The group has also planned to construct a new plant for [[Bestune]], which would expand its presence in Iraq and create more opportunities in the region.<ref name=":6" />

== Primary sectors ==
=== Agriculture ===
Agriculture contributes just 3.3% to the [[gross national product]] but employs a fifth of the labor force.<ref>{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/iraq/|title=Middle East :: Iraq — The World Factbook - Central Intelligence Agency|website=www.cia.gov|access-date=2019-03-31|archive-date=8 March 2023|archive-url=https://web.archive.org/web/20230308160827/https://www.cia.gov/the-world-factbook/countries/iraq/|url-status=live}}</ref>

Historically, 50 to 60 per cent of Iraq's arable land was under cultivation.<ref>{{Cite book|url=https://books.google.com/books?id=ZeGZBQAAQBAJ&q=Historically%2C+50+to+60+percent+of+Iraq%E2%80%99s+arable+land+has+been+under+cultivation.&pg=PA176|title=Iraq Country Study Guide Volume 1 Strategic Information and Developments|last= |first= |date=2012-03-03|publisher=Lulu.com|isbn=9781438774633|language=en}}{{self-published source|date=July 2021}}</ref>{{self-published inline|date=February 2020}} Under the UN [[Oil for Food program]], Iraq imported large quantities of [[grain]]s, [[meat]], [[poultry]], and [[dairy product]]s. In 1981, the government abolished its [[collective farming]] program. During the Gulf War, Iraqi agriculture was disrupted physically and suffered from [[economic sanctions]] imposed by the United Nations. Imports were curtailed, petroleum exports were cut off and agricultural production with potential military application was halted. The Iraqi government responded by monopolizing grain and oilseed marketing, imposing production quotas, and instituting a [[Public Distribution System]] for basic foodstuffs. By mid-1991, the government supplied a "basket" of foodstuffs that provided about one-third of the caloric daily requirement and cost consumers about five percent of its market value.  With subsidies for agricultural inputs diminished, the government's prices failed to cover their costs. Tax on agricultural production reached 20 to 35 percent by the mid-1990s. In October 1991 the Baghdad regime withdrew personnel from the northern region controlled by two Kurdish parties. [[Kurdistan Region]] was described as "... a [[market economy]] essentially left alone by a fragile governing structure, but heavily influenced by substantial international humanitarian aid flows."<ref>Randy Schnepf, Iraq Agriculture and Food Supply:  Background and Issues, (Washington DC:  Congressional Research Service, Library of Congress, 7 June 2004) p 37.</ref>

In December 1996, under an "Oil for Food Program" negotiated with the United Nations, Iraq started exporting petroleum and used the proceeds to import foodstuffs. Grain imports averaged $828 million from 1997 to 2001, an increase of over 180 percent from the previous five-year period. Due to foreign competition, Iraqi production declined (29 percent for wheat, 31 percent for barley, and 52 percent for maize). Because the government had neglected the production of forage crops, fruits, vegetables, and livestock other than poultry, those sectors were less buffeted by international affairs. Nevertheless, they were affected by severe drought, an outbreak of [[Cochliomyia|screwworm]], and an [[epizootic]] of [[foot-and-mouth disease]]<ref>Beer, Sam. [https://books.google.com/books?id=ty5oDQAAQBAJ&pg=PP1 The United States' Program for Agriculture in Post-Invasion Iraq] {{Webarchive|url=https://web.archive.org/web/20230412055453/https://books.google.com/books?id=ty5oDQAAQBAJ&pg=PP1 |date=12 April 2023 }}. 2016.</ref> As the Oil for Food Program expanded to cover more agricultural inputs and machinery, the productivity of Iraqi agriculture stabilized around 2002.

After the U.S. invasion in March 2003, many Iraqis became dependent on government-subsidized food. The US-funded agricultural reconstruction program thus focused on increased productivity under the aegis of Agricultural Reconstruction and Development Iraq (ARDI).<ref>{{cite web|url=https://www.dai.com/our-work/projects/iraq-agriculture-reconstruction-and-development-program-iraq-ardi|title=Agriculture Reconstruction and Development Program for Iraq (ARDI)|website=DAI: International Development|access-date=30 August 2018|archive-date=30 August 2018|archive-url=https://web.archive.org/web/20180830110113/https://www.dai.com/our-work/projects/iraq-agriculture-reconstruction-and-development-program-iraq-ardi|url-status=live}}</ref> Another program was run by Development Alternatives, Inc. (DAI) of [[Bethesda, Maryland]]. The restoration of Iraq's irrigation systems was largely funded by [[Bechtel|Bechtel International]].

ARDI conducted trials to improve farming practices and crop varieties of winter cereals (wheat and barley), summer cereals (rice, maize, and sorghum), potatoes, and tomatoes. Feed supplements and veterinary treatments were introduced to increase ovulation, conception, and birth weights of livestock.  Surveys were conducted of poultry growers and apple farmers. Nurseries were established for date palms and grapes. ARDI had projects promoting trade associations and producers' co-ops and supported extension as an appropriate governmental function. The contract eventually cost over $100 million and lasted through December 2006. Under its Community Action Program, USAID also funded an analysis of markets for sheep and wool. It awarded a contract to the [[University of Hawaiʻi|University of Hawaii]] to revitalize [[Agricultural education|higher education in agriculture]]. It awarded a contract for $120 million to the [[Louis Berger Group]] to promote Iraq's private sector, including agriculture.<ref>Beer, Sam. [https://books.google.com/books?id=ty5oDQAAQBAJ&pg=PP1 ''The United States' Program for Agriculture in Post-Invasion Iraq''] {{Webarchive|url=https://web.archive.org/web/20230412055453/https://books.google.com/books?id=ty5oDQAAQBAJ&pg=PP1 |date=12 April 2023 }}. 2016.</ref>

Starting in 2006, [[Provincial Reconstruction Team]]s were sent in to promote goodwill and sap the insurgency. "PRTs" allowed military commanders to identify local needs and, with few bureaucratic hurdles, to dispense up to $500,000. Civilians from many agencies within the [[U.S. Department of Agriculture]], as well as [[USAID]], served tours on PRTs. Some participants criticized the absence of a national agricultural strategy, or clear direction on the design of projects. Others complained that projects emphasized "American-style, 21st-century [[Agricultural technology|agricultural technologies]] and methodologies..." that were inappropriate for Iraq.<ref>Bernard Carreau, ed. "Lessons from USDA in Iraq and Afghanistan,"  ''Prism'' Vol. 1, No. 3, (September 2011): 139.</ref>

Agricultural production did not rebound from the reconstruction program. According to the [[Food and Agriculture Organization]] (FAO), between 2002 and 2013, the production of wheat increased 11 percent and milled rice 8 percent, but barley had decreased 13 percent and maize 40 percent. Scaled in "international dollars" (2004-2006 base equaling 100) Iraq's per capita food production was 135 in 2002, 96 in 2007, and 94 in 2012. The agricultural sector shed workers. In those same years, production per worker was 117, 106, and 130, respectively.<ref>"FAOSTAT Country Profiles:  Iraq."  [http://www.fao.org/countryprofiles/index/en/?iso3=IRQ FAO website] {{Webarchive|url=https://web.archive.org/web/20161110195631/http://www.fao.org/countryprofiles/index/en/?iso3=IRQ |date=10 November 2016 }}</ref>

The international [[Oil-for-Food program]] (1997–2003) further reduced farm production by supplying artificially priced foreign foodstuffs. Because of favorable weather conditions, grain production was 22 percent higher than in 2002. Although growth continued in 2004, experts predicted that Iraq would be an importer of agricultural products for the foreseeable future. Long-term plans call for investment in agricultural machinery and materials and more prolific crop varieties—improvements that did not reach Iraq's farmers under the Hussein regime. In 2004, the main crops were wheat, barley, corn, rice, vegetables, dates, and cotton, and the main livestock outputs were cattle and sheep.

The [[Agricultural Cooperative Bank of Iraq|Agricultural Cooperative Bank]], capitalized at nearly 1 G$ - by 1984, targets its low-interest, low-collateral loans to private farmers for mechanization, poultry projects, and orchard development. Large modern cattle, [[dairy farming|dairy]], and poultry farms are under construction. Obstacles to agricultural development include labor shortages, inadequate management and maintenance, salinization, [[urbanization|urban migration]], and dislocations resulting from previous land reform and collectivization programs.

In 2011, an agricultural adviser to the Iraqi government, [[Layth Mahdi]], summarized the forced United States agricultural reconstruction:<blockquote> Before 2003, Iraq had imported about 30 per cent of its food needs annually. The decline in agricultural production after this period, created the need for importing 90 per cent of the food at a cost estimated at more than $12 billion annually. Due to the sudden shift in the agricultural policy from subsidized assistance to an immediate shift to a free market policy, the outcomes led to a decline in production. The observed outcome resulted in many farmers abandoning the land and agriculture. The impact on natural resources results in an exploited and degraded environment leaving the land destitute and the people impoverished, unemployed [and] experiencing a sense of losing their human dignity.<ref>{{Cite news|url=http://www.iraq-businessnews.com/2011/06/08/agricultural-production-iraq%E2%80%99s-best-chance-for-restoring-food-security/|title=Agricultural Production: Iraq's Best Chance for Restoring Food Security|work=Iraq Business News|access-date=2018-10-22|language=en-US|archive-date=23 October 2018|archive-url=https://web.archive.org/web/20181023080128/http://www.iraq-businessnews.com/2011/06/08/agricultural-production-iraq%E2%80%99s-best-chance-for-restoring-food-security/|url-status=live}}</ref></blockquote>Importation of foreign workers and increased entry of women into traditionally male labour roles have helped compensate for agricultural and industrial labour shortages exacerbated by the war. A disastrous attempt to drain the southern marshes and introduce irrigated farming to this region merely destroyed a natural food producing area, while concentration of salts and minerals in the soil due to the draining left the land unsuitable for agriculture.<ref name="MarshArabs">{{cite web | url= http://www1.american.edu/ted/MARSH.HTM | title= TED Case Studies: Marsh Arabs | work= Trade Environment Database | publisher= [[American University]] | access-date= 2011-01-14 | url-status= dead | archive-url= https://web.archive.org/web/20100627142037/http://www1.american.edu/ted/marsh.htm | archive-date= 2010-06-27}}</ref> 

In the Mada'in Qada region east of [[Baghdad]], hundreds of small farmers united to form the [[Green Mada'in Association for Agricultural Development]], an agricultural cooperative that provides its members with [[drip irrigation]] and [[greenhouse]]s as well as access to credit.<ref>{{cite web | last= Habenstreit | first= Linda C. | url= http://www.rurdev.usda.gov/rbs/pub/jan10/green.htm | title= Co-op playing key role as Iraq rebuilds farm sector | work= [[Rural Cooperatives]] | date= 10 Jan 2010 | access-date= 17 March 2010 | archive-url= https://web.archive.org/web/20100304091753/http://www.rurdev.usda.gov/rbs/pub/jan10/green.htm | archive-date= 4 March 2010 | url-status= dead }}</ref> 

In recent years, farmers have been confronted with reduced rainfall and high temperatures. Particularly affected are small scale farmers who, unable to withstand lower water levels, are forced to leave their lands in search of different ways to fulfill their livelihoods.<ref>{{Cite web |title=Unfarmed Now, Uninhabited When? Agriculture and climate change in Iraq |url=https://policy-practice.oxfam.org/resources/unfarmed-now-uninhabited-when-agriculture-and-climate-change-in-iraq-621360/ |access-date=2022-04-12 |website=Oxfam Policy & Practice |language=en-US |archive-date=5 April 2022 |archive-url=https://web.archive.org/web/20220405152033/https://policy-practice.oxfam.org/resources/unfarmed-now-uninhabited-when-agriculture-and-climate-change-in-iraq-621360/ |url-status=live }}</ref>

=== Forestry, fishing, and mining ===
Throughout the twentieth century, human exploration, shifting agriculture, [[Wildfire|forest fires]], and uncontrolled grazing denuded large areas of Iraq's natural forests, which in 2005 were almost exclusively confined to the northeastern highlands. Most of the trees found in that region are not suitable for lumbering. In 2002, a total of 112,000 cubic meters of wood were harvested, nearly half of which was used as fuel.{{citation needed|date=October 2022}}

Despite its [[Tigris–Euphrates river system|notable large rivers]], Iraq's fishing industry has remained relatively small and based largely on marine species in the Persian Gulf. In 2001, the approximate yield was 8,000 tons (compared to 18,000/t during the period between 1981-1997) according to official government estimates.<ref>{{cite web |title=FAO Fishery Country Profile - Republic of Iraq |url=https://www.fao.org/fishery/docs/DOCUMENT/fcp/en/FI_CP_IQ.pdf |access-date=10 March 2024 |archive-date=10 March 2024 |archive-url=https://web.archive.org/web/20240310235654/https://www.fao.org/fishery/docs/DOCUMENT/fcp/en/FI_CP_IQ.pdf |url-status=live }}</ref>

Aside from hydrocarbons, Iraq's mining industry has been confined to extraction of relatively small amounts of [[phosphates]] (at [[Akashat]]), salt, and sulfur (near [[Mosul]]). Since a productive period in the 1970s, the mining industry has been hampered by the [[Iran–Iraq War]] (1980–88), the sanctions of the 1990s, and the economic collapse of 2003.<ref>{{cite news |date=7 September 2011 |title=Iraq faces rocky road in mining investment hunt |url=https://www.reuters.com/article/iraq-mining/iraq-faces-rocky-road-in-mining-investment-hunt-idUSL5E7K749020110907 |work=Reuters |access-date=22 May 2023 |archive-date=22 May 2023 |archive-url=https://web.archive.org/web/20230522184325/https://www.reuters.com/article/iraq-mining/iraq-faces-rocky-road-in-mining-investment-hunt-idUSL5E7K749020110907 |url-status=live }}</ref>

=== Energy ===
{{See also|Energy in Iraq|Petroleum industry in Iraq}}
[[File:Map-of-countries-by-proven-oil-reserves-(in-millions-of-barrels)---2017---US-EIA---Jo-Di-graphics.jpg|thumb|upright=1.5|A map of world [[oil reserves]] according to U.S. EIA, 2017]]

Iraq is one of the most oil-rich countries in the world. The country holding the fifth largest proven crude oil reserves,{{r|WB18|p=5}} totaling 147.22 billion barrels at the end of 2017.<ref>{{Cite web|url=https://www.opec.org/opec_web/en/data_graphs/330.htm|title=OPEC : OPEC Share of World Crude Oil Reserves|website=www.opec.org|access-date=2019-03-31|archive-date=25 August 2017|archive-url=https://web.archive.org/web/20170825142633/http://www.opec.org/opec_web/en/data_graphs/330.htm|url-status=live}}</ref> Most of this oil—4 million barrels per day out of 4.3 million barrels produced daily—is exported, making Iraq the third-largest exporter of oil.{{r|WB18|p=5}} Despite its ongoing civil war, Iraq was able to increase oil production during 2015 and 2016, with production dipping by 3.5 per cent in 2017 due to conflict with the [[Kurdistan Regional Government]] and OPEC production limits.{{r|WB18|p=5}} By world standards, production costs for Iraqi oil are relatively low.<ref>{{cite news |author1=WSJ News Graphics |title=Barrel Breakdown |url=http://graphics.wsj.com/oil-barrel-breakdown/ |access-date=30 August 2018 |work=The Wall Street Journal |date=15 April 2016 |archive-date=31 December 2017 |archive-url=https://web.archive.org/web/20171231165318/http://graphics.wsj.com/oil-barrel-breakdown/ |url-status=live }}</ref> However, four wars<ref name=Calamur>{{cite news |last1=Calamur |first1=Krishnadev |title=Oil Was Supposed to Rebuild Iraq |url=https://www.theatlantic.com/international/archive/2018/03/iraq-oil/555827/ |access-date=30 August 2018 |work=The Atlantic |date=19 March 2018 |archive-date=29 June 2018 |archive-url=https://web.archive.org/web/20180629211732/https://www.theatlantic.com/international/archive/2018/03/iraq-oil/555827/ |url-status=live }}</ref>—the 1980–1988 [[Iraq-Iran War]], 1991 [[Gulf War]], the 2003&ndash;2011 [[War in Iraq]], and the [[Iraqi Civil War (2014–2017)|civil war]]—and the 1991–2003 UN sanctions have left the industry's infrastructure in poor condition.{{r|WB18|pp=5-6}}
[[File:US Navy 090328-N-0803S-012 Sailors walk along Iraq's Khawr Al Amaya Oil Platform (KAAOT). U.S. and Coalition forces guard the Khawr Al Amaya Oil Platform.jpg|left|thumb|Khawr Al Amaya Oil Platform in [[Basra Governorate]]]]
[[File:Power plant in Dora.jpg|thumb|Power plant and oil refinery in Dora neighborhood in Baghdad]]
In the 1970s, Iraq produced over 3.5 million barrels of oil per day.<ref name=":4">{{Cite web |last=Otterman |first=Sharon |title=IRAQ: Oil {{!}} Council on Foreign Relations |url=https://www.cfr.org/backgrounder/iraq-oil-0 |access-date=2025-10-22 |website=www.cfr.org |language=en}}</ref> Production began to fall during the Iran-Iraq War, before plummeting 85 per cent after the 1991 invasion of Kuwait.<ref name="Calamur" /><ref name=":4" /><ref name="Kumins" /> UN sanctions prevented the export of oil until 1996, and then allowed exports only in exchange for humanitarian aid in the [[Oil-for-Food Programme]].<ref name=Calamur />
The 2003 lifting of sanctions enabled production—and exports—to restart.<ref name=Calamur /> Production has since recovered to pre-Gulf War levels, and most of Iraq's oil infrastructure has been repaired, despite persistent sabotage by the [[Islamic State of Iraq and the Levant|Islamic State]] (ISIL) and others.<ref>{{cite news |last1=Xhemaj |first1=Valdrin |title=Iraq: what happened to the oil after the war? |url=https://theconversation.com/iraq-what-happened-to-the-oil-after-the-war-62188 |access-date=30 August 2018 |work=The Conversation |date=8 July 2016 |archive-date=30 August 2018 |archive-url=https://web.archive.org/web/20180830074216/https://theconversation.com/iraq-what-happened-to-the-oil-after-the-war-62188 |url-status=live }}</ref> In 2004, Iraq had eight oil refineries, the largest of which were at [[Baiji, Iraq|Baiji]], [[Basra]], and Daura.<ref name=Kumins />

Despite its oil wealth, sabotage and technical problems at refineries have forced Iraq to import petroleum, other refined oil products, and electricity from the neighbouring countries, especially Iran.<ref name=Coles>{{cite news |last1=Coles |first1=Isabel |last2=Nabhan |first2=Ali |title=Oil-Rich Iraq Can't Keep the Lights On |url=https://www.wsj.com/articles/oil-rich-iraq-cant-keep-the-lights-on-1532174400 |access-date=30 August 2018 |work=The Wall Street Journal |date=21 July 2018 |archive-date=30 August 2018 |archive-url=https://web.archive.org/web/20180830043851/https://www.wsj.com/articles/oil-rich-iraq-cant-keep-the-lights-on-1532174400 |url-status=live }}</ref> In 2004, for example, Iraq spent $60 million per month for imported gasoline. Sabotage
In late 2004 and early 2005, regular sabotage of plants and pipelines reduced export and domestic distribution of oil, particularly to Baghdad.<ref name=":4" /> Nationwide fuel shortages and power outages resulted.<ref name=Kumins>{{cite report |last=Kumins |first=Lawrence |date=13 April 2005 |title=Iraq Oil: Reserves, Production, and Potential Revenues |url=https://fas.org/sgp/crs/mideast/RS21626.pdf |publisher=Congressional Research Service |docket=RS21626 |access-date=29 August 2018 |archive-date=27 September 2018 |archive-url=https://web.archive.org/web/20180927114519/https://fas.org/sgp/crs/mideast/RS21626.pdf |url-status=live }}</ref> Persistent ISIL sabotage of pipelines, power plants and power lines, and theft of oil and electricity have also contributed to the [[2015–2018 Iraqi protests#2018|July 2018 protests]] in southern Iraq.<ref name=Coles />

In 2004, plans called for increased domestic utilization of natural gas to replace oil and for use in the [[petrochemical industry]]. However, because most of Iraq's gas output is associated with oil, output growth depends on developments in the oil industry.

Half of Iraq's power plants were destroyed in the [[Persian Gulf War of 1991]], and full recovery never occurred.<ref>{{cite book |title=CONDUCT OF THE PERSIAN GULF WAR |date=April 1992 |publisher=US Congress |location=Washington, DC |chapter=VI: The Air Campaign}}</ref> In mid-2004, Iraq had an estimated 5,000 megawatts of power-generating capacity, compared with 7,500 megawatts of demand.<ref name=Luay /> At that time, the transmission system included 17,700 kilometers of line. In 2004, plans called for construction of two new power plants and restoration of existing plants and transmission lines to ease the blackouts and economic hardship caused by this shortfall, but sabotage and looting kept capacity below 6,000 megawatts. The ongoing civil war, sabotage of transmission lines, and [[corruption in Iraq|government corruption]] caused the electricity shortage to worsen: by 2010 demand outstripped supply by 6000 megawatts.<ref name=Luay>{{cite report |author=Luay Al-Khatteeb |author2=Harry Istepanian |name-list-style=amp |date=March 2015 |title=Turn a Light On: Electricity Sector Reform in Iraq |url=https://www.brookings.edu/wp-content/uploads/2016/06/Alkhatteeb-Istepanian-English-PDF.pdf |publisher=Brookings Institution |access-date=29 August 2018 |archive-date=28 July 2018 |archive-url=https://web.archive.org/web/20180728234556/https://www.brookings.edu/wp-content/uploads/2016/06/Alkhatteeb-Istepanian-English-PDF.pdf |url-status=live }}</ref>

Oil continues to dominate Iraq's economy. {{As of|2018}}, oil is responsible for over 65% of GDP and 90% of total government revenue.<ref name=WB18>{{cite report |date=Spring 2018 |title=Iraq Economic Monitor: From War to Reconstruction and Economic Recovery |url=http://documents.worldbank.org/curated/en/771451524124058858/pdf/125406-WP-PUBLIC-P163016-Iraq-Economic-Monitor-text-Spring-2018-4-18-18web.pdf |publisher=[[World Bank Group]] |access-date=29 August 2018 |archive-date=16 July 2018 |archive-url=https://web.archive.org/web/20180716154604/http://documents.worldbank.org/curated/en/771451524124058858/pdf/125406-WP-PUBLIC-P163016-Iraq-Economic-Monitor-text-Spring-2018-4-18-18web.pdf |url-status=live }}</ref> [[Petroleum industry in Iran|Petroleum]] constitutes 94% of Iraq's exports with a value of $59.73 billion in 2017.<ref>{{Cite web|url=https://www.opec.org/opec_web/en/about_us/164.htm|title=Iraq facts and figures|last=OPEC|date=2018|website=www.opec.org|access-date=29 July 2018|archive-date=21 June 2019|archive-url=https://web.archive.org/web/20190621181314/https://www.opec.org/opec_web/en/about_us/164.htm|url-status=live}}</ref> The central government hopes to diversify the economy away from oil, and has had some success: non-oil GDP growth, which was below the regional average from 2014 to 2016, pushed above the average in 2017.{{r|WB18|p=4}} Despite this, the percentage of government spending going to non-oil investment has continued to decline since 2013 and now{{When|date=October 2024|reason=Needs a year for clarification (or an updated figure).}} stands at only 34 per cent.{{r|WB18|p=4}}

==== 2009 oil services contracts ====
{{update|section|date=August 2018}}
Between June 2009 and February 2010 the [[Ministry of Oil (Iraq)|Ministry of Oil]] tendered for the award of Service Contracts to develop Iraq's existing oil fields. The results of the tender, which were broadcast live on Iraqi television, are as follows for all major fields awarded but excluding the [[Kurdistan Region]] where Production Sharing Contracts have been awarded that are currently being disputed by the Baghdad government. All contracts are awaiting final ratification of the awards by the Iraqi government. Company shares are subject to change as a result of commercial negotiations between parties.

{| class="wikitable"
|-
! Field
! Company
! Home country
! Company type
! Share in field
! Production increase share
! Service fee per bbl
! Gross revenue at plateau - US bn p.a.
! References
|-
| rowspan="2" | [[Majnoon oil field|Majnoon]]
| [[Royal Dutch Shell|Shell]]
| {{Flag|Netherlands}}
| Public
| 45%
| 0.7875
| 1.39
| 0.4
| [https://news.bbc.co.uk/1/hi/8407274.stm BBC] 
|-
| [[Petronas]]
| {{Flag|Malaysia}}
| State
| 30%
| 0.525
| 1.39
| 0.266
| [https://web.archive.org/web/20091214170521/http://www.shell.com/home/content/media/news_and_library/press_releases/2009/iraq_majnoon_contract_11122009.html Shell]
|-
| rowspan="3" | [[Halfaya Field|Halfaya]]
| [[CNPC]]
| {{Flag|China}}
| State
| 37.5%
| 0.525
| 1.39
| 0.102
| [http://www.upstreamonline.com/live/article201498.ece Upstream] {{Webarchive|url=https://web.archive.org/web/20160112213319/http://www.upstreamonline.com/live/article201498.ece |date=12 January 2016 }}
|-
| [[Petronas]]
| {{Flag|Malaysia}}
| State
| 18.75%
| 0.099
| 1.4
| 0.051
| [http://www.upstreamonline.com/live/article204570.ece Upstream] {{Webarchive|url=https://web.archive.org/web/20120926032236/http://www.upstreamonline.com/live/article204570.ece |date=26 September 2012 }}
|-
| [[TotalEnergies]]
| {{Flag|France}}
| Public
| 18.75%
| 0.099
| 1.39
| 0.051
|
|-
| rowspan="2" | [[Rumaila oil field|Rumaila]]
| [[BP]]
| {{Flag|United Kingdom}}
| Public
| 37.5%
| 0.7125
| 2
| 0.520
| [https://web.archive.org/web/20090727090536/http://www.businessweek.com/globalbiz/content/jul2009/gb20090724_632771.htm Business Week]
|-
| [[CNPC]]
| {{Flag|China}}
| State
| 37.5%
| 0.7125
| 1.39
| 0.520
|
|-
| rowspan="3" | [[Az Zubayr|Zubair]]
| [[Eni|ENI]]
| {{Flag|Italy}}
| Public
| 32.81%
| 0.328
| 2
| 0.240
| [https://web.archive.org/web/20091107025815/http://www.businessweek.com/magazine/content/09_46/b4155000179541.htm Business Week]
|-
| [[Occidental Petroleum|Occidental]]
| {{Flag|United States}}
| Public
| 23.44%
| 0.2344
| 2
| 0.171
| [http://www.businessweek.com/ap/financialnews/D9DCOPK80.htm Business Week]{{dead link|date=January 2025|bot=medic}}{{cbignore|bot=medic}}
|-
| [[KOGAS]]
| {{Flag|Korea}}
| State
| 18.75%
| 0.1875
| 2
| 0.137
| [http://www.upstreamonline.com/live/article204637.ece Business Week] {{Webarchive|url=https://web.archive.org/web/20111007122955/http://www.upstreamonline.com/live/article204637.ece |date=7 October 2011 }}
|-
| rowspan="2" | [[West Qurna Field]] Phase 2
| [[Lukoil]]
| Russia
| Public
| 75.00%
| 1.3500
| 1.15
| 0.567
| [https://web.archive.org/web/20091107025815/http://www.businessweek.com/magazine/content/09_46/b4155000179541.htm Business Week]
|-
| [[Equinor]]
| Norway
| State
| n/a<ref>{{Cite news |url=https://af.reuters.com/article/energyOilNews/idAFL5E8E714T20120307 |title=Iraq approves Statoil sale of oil field stake to Lukoil |publisher=af.reuters.com |access-date=2012-03-07 |newspaper=Reuters |date=2012-03-07 |archive-date=4 March 2016 |archive-url=https://web.archive.org/web/20160304064349/http://af.reuters.com/article/energyOilNews/idAFL5E8E714T20120307 |url-status=dead }}</ref>
| n/a
| n/a
| n/a
| [http://www.statoil.com/en/NewsAndMedia/News/2010/Pages/LukoilAndStatoilSignsWestQurnaContract.aspx Equinor] {{Webarchive|url=https://web.archive.org/web/20120125083852/http://www.statoil.com/en/NewsAndMedia/News/2010/Pages/LukoilAndStatoilSignsWestQurnaContract.aspx |date=25 January 2012 }}
|-
| rowspan="4" | [[Badra, Iraq|Badra]]
| [[Gazprom]]
| Russia
| State
| 30%
| 0.051
| 5.5
| 0.102
|[https://web.archive.org/web/20120125161810/http://www.businessweek.com/ap/financialnews/D9DGMVR00.htm Business Week]
|-
| [[Petronas]]
| Malaysia
| State
| 15%
| 0.0255
| 5.5
| 0.051
| [http://www.upstreamonline.com/live/article204640.ece Upstream] {{Webarchive|url=https://web.archive.org/web/20111007124602/http://www.upstreamonline.com/live/article204640.ece |date=7 October 2011 }}
|-
| [[KOGAS]]
| Korea
| State
| 23%
| 0.03825
| 5.5
| 0.077
| [http://www.upstreamonline.com/live/article204637.ece Upstream] {{Webarchive|url=https://web.archive.org/web/20111007122955/http://www.upstreamonline.com/live/article204637.ece |date=7 October 2011 }}
|-
| [[TPAO]]
| Turkey
| State
| 8%
| 0.01275
| 5.5
| 0.026
|
|-
| rowspan="2" | [[West Qurna Field]] Phase 1
| [[Exxon]]
| US
| Public
| 60%
| 1.2276
| 1.9
| 0.851
| [http://www.businessweek.com/ap/financialnews/D9DENUP80.htm Business Week]{{dead link|date=January 2025|bot=medic}}{{cbignore|bot=medic}}
|-
| [[Royal Dutch Shell|Shell]]
| United Kingdom / {{Flag|Netherlands}}{{NoteTag|From 2005 to 2022, Shell had its headquarters in The Hague and its registered office in London. In January 2022, the company moved its headquarters to London.}}
| Public
| 15%
| 0.3069
| 1.9
| 0.213
| [http://royaldutchshellplc.com/2010/01/25/exxon-shell-sign-final-deal-for-iraqs-west-qurna-1-oil-field/ Alfred Donovan's blog] {{Webarchive|url=https://web.archive.org/web/20120229032449/http://royaldutchshellplc.com/2010/01/25/exxon-shell-sign-final-deal-for-iraqs-west-qurna-1-oil-field/ |date=29 February 2012 }} ([[royaldutchshellplc.com]])
|}

''Notes:''

# ''Field shares are as a % of the total. The Iraqi state retains a 25% share in all fields for which service contracts have been awarded.''
# ''Production increase share is the millions of bbls per day that will attract the service fee for the company.''
# ''Gross revenue at plateau is the total payment each company will receive upon reaching their declared target plateau production rate (in between 5 and 8 years, depending on the field), before deduction of any operating costs, in addition to recovery of all development costs as billions of US dollars per annum. The total gross revenue for all companies, after recovery of capital costs, is at plateau production of an additional 9.4 mb/d, 4.34 bn US per annum, at a $70 bbl oil price. The 2010 Iraq govt budget is $60 billion. $300 billion is approximately $10,000 per annum for each Iraqi citizen.''

In summary the shares by region in the increased production are:

{| class="wikitable"
|-
! Region
! Production<br />Share mb/d
! % of<br />total
|-
| Iraq
| 1.462
| 25%
|-
| Asia
| 1.9
| 20%
|-
| UK
| 1.81
| 19%
|-
| US
| 1.462
| 16%
|-
| Russia
| 1.402
| 14%
|-
| Europe (excl UK)
| 0.528
| 6%
|}

== Services ==
=== Finance ===
[[File:Baghdad CBI TOWER Iraq.jpg|thumb|The new headquarters of the Central Bank of Iraq under construction, 2022]]
Iraq's financial services have been the subject of post-Saddam reforms. The 17 private banks established during the 1990s were limited to domestic transactions and attracted few private depositors. Those banks and two main state banks were badly damaged by the international embargo of the 1990s. To further privatize and expand the system, in 2003 the [[Coalition Provisional Authority]] removed restrictions on international bank transactions and freed the [[Central Bank of Iraq]] (CBI) from government control. In its first year of independent operation, the CBI received credit for limiting Iraq's inflation.{{Citation needed|date=January 2023}} In 2004, three foreign banks ([[HSBC]], [[Standard Chartered]], [[National Bank of Kuwait]]) were the first to receive licenses to do business in Iraq.<ref>{{cite news |title=Iraq licenses first foreign banks |url=https://www.aljazeera.com/news/2004/1/31/iraq-licenses-first-foreign-banks |access-date=12 January 2023 |work=Al Jazeera |date=31 January 2004 |archive-url=https://web.archive.org/web/20230112155520/https://www.aljazeera.com/news/2004/1/31/iraq-licenses-first-foreign-banks |archive-date=12 January 2023}}</ref>

==== Banking ====
{{excerpt|Banking in Iraq}}

=== Private security ===
Because of the danger posed by Iraq's ongoing insurgency, the [[Security (finance)|security]] industry has been a uniquely prosperous part of the services sector. Often run by former US military personnel, in 2005 at least 26 companies offered personal and institutional protection, surveillance, and other forms of security.<ref>{{Cite web |title=Security Contractors in Iraq |url=https://archive.globalpolicy.org/security/issues/iraq/occupation/2005/0910contractors.htm |access-date=2024-01-22 |website=archive.globalpolicy.org |archive-date=8 May 2024 |archive-url=https://web.archive.org/web/20240508061604/https://archive.globalpolicy.org/security/issues/iraq/occupation/2005/0910contractors.htm |url-status=live }}</ref>

=== Retail ===
[[File:Al Basheer shopping center, Najaf.webm|thumb|Inside a shopping mall in Najaf]]
In the early post-Hussein period, a [[freewheel]]ing retail trade in all types of commodities straddled the line between legitimate and illegitimate commerce, taking advantage of the lack of income tax and import controls.<ref name=":2">{{Cite web |title=Iraq Economy Iraqi Economy, business opportunities in Iraq |url=https://www.globaltenders.com/economy-of-iraq |access-date=2024-01-22 |website=Global Tenders |language=en |archive-date=8 May 2024 |archive-url=https://web.archive.org/web/20240508061607/https://www.globaltenders.com/economy-of-iraq |url-status=live }}</ref><gallery mode="packed">
File:فندق بغداد روتانا.jpg|[[Baghdad Mall]]
File:Dream City Mall.jpg|Dream City Mall
File:مول زيونة.jpg|Zayoona Mall
File:مول بابلون.jpg|Babylon Mall
File:Basra Mall.jpg|A mall in Basra
File:Basra Times Square Shopping centre.jpg|Basra Times Square
</gallery>

=== Tourism ===
The [[Tourism in Iraq|Iraq tourism industry]], which in peaceful times has profited from Iraq's many places of cultural interest (earning US$14 million in 2001), has been dormant since 2003. Despite conditions, in 2005 the Iraqi Tourism Board maintained a staff of 2,500 and 14 regional offices.<ref name=":2" /> Between 2009 and 2010, 165 tourists from 16 countries entered Iraq to visit historic sites; as of January 2011, a U.S. State Department grant provided $2 million to help preserve [[Babylon]], supporting the re-opening of one of the site's two museums.<ref>{{cite web | title= Iraq tourism hangs in balance at Babylon | date= 13 January 2011 | publisher= [[CNN]] | url= http://www.cnn.com/2011/WORLD/meast/01/13/babylon.iraq.archaeology/index.html | last1= Neild | first1= Barry | last2= Tawfeeq | first2= Mohammed | work= Inside the Middle East | access-date= 2011-01-14 | archive-date= 25 September 2013 | archive-url= https://web.archive.org/web/20130925041758/http://www.cnn.com/2011/WORLD/meast/01/13/babylon.iraq.archaeology/index.html | url-status= live }}</ref>

=== Telecommunications ===
From 2003 to 2008, mobile phone subscriptions had expanded over hundred-fold to ten million nationwide, according to the [[Brookings Institution]].<ref>{{cite web|url=https://abcnews.go.com/International/Story?id=4473387&page=2|title=Page 2: Iraq, 5 Years On: Key Facts and Figures - ABC News|author=ABC News|work=ABC News|access-date=3 March 2015|date=2008-03-18|archive-date=2 April 2015|archive-url=https://web.archive.org/web/20150402174257/http://abcnews.go.com/International/Story?id=4473387&page=2|url-status=live}}</ref>

== Labor force ==
{{Update section|date=May 2025}}
In 2002, Iraq's labour force was estimated at 6.8 million people.

In 1996, some 66.4 per cent of the labour force worked in services, 17.5 per cent in industry, and 16.1 per cent in agriculture. 2004 estimates of Iraq's unemployment ranged from 30 per cent to 60 per cent.

{| class="wikitable sortable"
|+'''Nationwide unemployment rate since May, 2003<ref name="campbell">{{cite web |url= http://www.brookings.edu/saban/~/media/Files/Centers/Saban/Iraq%20Index/index.pdf |title= Iraq Index - Tracking Variables of Reconstruction & Security in Post-Saddam Iraq |access-date= 2009-02-22 |last= Campbell |first= Jason H. |author2= Michael E. O'Hanlon |date= 2009-02-12 |work= Report |publisher= [[Brookings Institution]] |archive-date= 25 February 2009 |archive-url= https://web.archive.org/web/20090225175851/http://www.brookings.edu/saban/~/media/Files/Centers/Saban/Iraq%20Index/index.pdf |url-status= live }}</ref><ref name="icg">"Reconstructing Iraq", [[International Crisis Group]], Report, 2 September 2004, p. 16, footnote 157.</ref>'''
|-
! width="250px" | Month
! width="100px" | Unemployment<br />rate
|-
| 2003-2005 May
| N/A
|-
| 2003-2006 June
| 50-60%
|-
| 2003-2007 July
| N/A
|-
| 2003-2008 August
| 50-60%
|-
| 2003-2009 September
| N/A
|-
| 2003-2010 October
| 40-50%
|-
| 2003-2011 November
| N/A
|-
| 2003-2012 December
| 45-55%
|-
| January to May 2004
| 30-45%
|-
| June to November 2004–06
| 30-40%
|-
| 2004-12 December
| 28-40%
|-
| January to October 2005
| 27-40%
|-
| November to December 2005
| 25-40%
|-
| 2006
| 25-40%
|-
| 2007
| 25-40%
|-
| 2008
| 25-40%
|-
| 2009
| 23-38%
|-
| 2010
| 15.2%
|-
| 2011
| 15.2%
|-
| 2012
| 15.3%
|-
| 2013
| 15.1%
|-
| 2014
| 15%
|-
| 2015
| 15.5%
|-
| 2016
| 16%
|}

The CPA has referred to a 25% unemployment rate, the [[Ministry of Planning (Iraq)|Iraqi Ministry of Planning]] mentioned a 30% unemployment rate, whereas the Iraqi Ministry of Social Affairs claims it to be 48%.<ref name="campbell" /> Other sources are claiming a 20% unemployment rate and a probably 60% under-employment rate.<ref name="caffrey">{{cite web |url= http://www.afa.org/EdOp/Iraq_AAR-November-2008.pdf |title= Memorandum for Colonel Michael Meese, Professor and Head Dept of Social Sciences |access-date= 2009-02-22 |last= McCaffrey |first= Barry R. |date= 2008-11-04 |work= Memo |publisher= Air Force Association |archive-url= https://web.archive.org/web/20090227175559/http://www.afa.org/EdOp/Iraq_AAR-November-2008.pdf |archive-date= 27 February 2009 |url-status= dead }}</ref> The actual figure is problematic because of high participation in black-market activities and poor security conditions in many populous areas. In central Iraq, security concerns discouraged the hiring of new workers and the resumption of regular work schedules. At the same time, the return of Iraqis from other countries increased the number of job seekers. In late 2004, most legitimate jobs were in the government, the army, the oil industry, and security-related enterprises.<ref>{{cite web |title=Iraq Living Conditions Survey 2004 |url=http://www.iq.undp.org/ILCS/labour.htm |website=UNDP in Iraq |publisher=United Nations Development Programme |url-status=dead |archive-url=https://web.archive.org/web/20051104114450/http://www.iq.undp.org/ILCS/labour.htm |archive-date=2005-11-04}}</ref> Under Saddam Hussein's reign, many of the highest-paid workers were employed by the greatly overstaffed government, whose overthrow disrupted the input of these people to the economy. In 2004, the U.S. [[United States Agency for International Development|Agency for International Development]] committed US$1 billion for a worker-training program. In early 2004, the minimum wage was US$72 per month.{{Citation needed|date=October 2024}}

== External trade ==
[[File:2006Iraqi exports.PNG|thumb|left|Iraqi exports in 2006]]
Iraq is a founding member of [[OPEC]].<ref>{{Cite web|url=http://www.opec.org/opec_web/en/about_us/25.htm|title=OPEC : Member Countries|website=www.opec.org|language=en|access-date=2018-03-21|archive-date=7 January 2020|archive-url=https://web.archive.org/web/20200107050155/https://www.opec.org/opec_web/en/about_us/25.htm|url-status=live}}</ref> [[Petroleum industry in Iraq|Petroleum]] constitutes 99,7% of Iraq's exports with a value of $43,8 billion in 2016.<ref name=":0">{{Cite web|url=http://www.opec.org/opec_web/en/about_us/164.htm|title=OPEC : Iraq|website=www.opec.org|language=en|access-date=2018-03-21|archive-date=29 January 2023|archive-url=https://web.archive.org/web/20230129202556/https://www.opec.org/opec_web/en/about_us/164.htm|url-status=live}}</ref>

From the 1990s until 2003, the international [[trade embargo]] restricted Iraq's export activity almost exclusively to oil. In 2003, oil accounted for about US$7.4 billion of Iraq's total US$7.6 billion of export value, and statistics for earlier years showed similar proportions. After the end of the trade embargo in 2003 expanded the range of exports, oil continued to occupy the dominant position: in 2004 Iraq's export income doubled (to US$16.5 billion), but oil accounted for all but US$340 million (2 per cent) of the total. In late 2004, sabotage significantly reduced oil output, and experts forecast that output, hence exports, would be below capacity in 2005 as well. In 2004, the chief export markets were the United States (which accounted for nearly half), Italy, France, Jordan, Canada, and the Netherlands. In 2004, the value of Iraq's imports was US$21.7 billion, incurring a trade deficit of about US$5.2 billion. In 2003, the main sources of Iraq's imports were Turkey, Jordan, Vietnam, the United States, Germany, and Britain. Because of Iraq's inactive manufacturing sector, the range of imports was quite large, including food, fuels, medicines, and manufactured goods. By 2010, exports rose to US$50.8 billion and imports rose to US$45.2 billion. Chief 2009 export partners were: U.S., India, Italy, South Korea, Taiwan, China, Netherlands, and Japan. Chief 2009 import partners were: Turkey, Syria, U.S., China, Jordan, Italy, and Germany.<ref>{{cite web|url=https://2009-2017.state.gov/r/pa/ei/bgn/6804.htm|title=Iraq|work=U.S. Department of State|access-date=3 March 2015|archive-date=21 January 2017|archive-url=https://web.archive.org/web/20170121040706/https://2009-2017.state.gov/r/pa/ei/bgn/6804.htm|url-status=live}}</ref>

In March 2022, Iran-Iraq trade reached a volume of 10 billion USD, as joint ventures increased significantly but were still limited due to sanctions against Iran. Especially goods originating from Iran were subject to a trade embargo imposed by the United States and the European Union. Iran and Iraq signed a memorandum of understanding (MOU) on economic cooperation in January 2021.<ref>[https://www.tehrantimes.com/news/479622/Iran-Iraq-trade-expected-to-reach-10b-by-late-March "Iran-Iraq trade expected to reach $10b by late March"] {{Webarchive|url=https://web.archive.org/web/20230325232731/https://www.tehrantimes.com/news/479622/Iran-Iraq-trade-expected-to-reach-10b-by-late-March |date=25 March 2023 }} ''tehrantimes'' Accessed 25 March 2023.</ref>

== Notes ==
{{reflist|group=note}}

== References ==
{{Reflist}}

== External links ==
* [https://web.archive.org/web/20091219131236/http://www.iauiraq.org/ Iraq Inter-Agency Information & Analysis Unit] Reports, Maps and Assessments of Iraq from the UN Inter-Agency Information & Analysis Unit
* [http://www.oilandgasinfrastructure.com/home/oilandgasmiddleeast/iraq Map of Iraq's oil and gas infrastructure] {{Webarchive|url=https://web.archive.org/web/20120905122215/http://www.oilandgasinfrastructure.com/home/oilandgasmiddleeast/iraq |date=5 September 2012 }}

{{Iraq topics}}
{{Asia topic|Economy of}}
{{OPEC}}

{{DEFAULTSORT:Iraq, Economy of}}
[[Category:Economy of Iraq| ]]
[[Category:Economy of the Arab League]]
[[Category:OPEC]]
[[Category:Economy of the Middle East]]