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An improving security environment and foreign investment are helping to spur economic activity, particularly in the energy, construction, and retail sectors. Broader economic development, long-term fiscal health, and sustained improvements in the overall standard of living still depend on the central government passing major policy reforms. 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. Iraq in 2012 boosted oil exports to a 30-year high of 2.6 million barrels per day, a significant increase from Iraq's average of 2.2 million in 2011. Government revenues increased as global oil prices remained persistently high for much of 2012. 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 Iraqi Kurdistan Region's (IKR) autonomous Kurdistan Regional Government (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. 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, which may have been harmed by the November 2012 standoff between Baghdad and Erbil and the removal of the Central Bank Governor in October 2012. 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 Rampant corruption, outdated infrastructure, insufficient essential services, skilled labor shortages, and antiquated commercial laws stifle investment and continue to constrain growth of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. Iraq is considering a package of laws to establish a modern legal framework for the oil sector and a mechanism to equitably divide oil revenues within the nation, although these reforms are still under contentious and sporadic negotiation. 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 the regions. 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 as security improved. 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.


GDP (purchasing power parity):
country comparison to the world: 52

GDP (official exchange rate):


Agriculture - products:

16% (2012 est.)

25% (2008 est.)


Household income or consumption by percentage share:
lowest 10%:3.6%

44.9% of GDP (2013 est.)

0.9% of GDP (2013 est.)

calendar year


Inflation rate (consumer prices):
country comparison to the world: 70

Central bank discount rate:
country comparison to the world: 60

Commercial bank prime lending rate:
country comparison to the world: 134

Stock of narrow money:
country comparison to the world: 44

Stock of broad money:
country comparison to the world: 60

Stock of domestic credit:
country comparison to the world: 180

Market value of publicly traded shares:

62.3 billion kWh (2013 est.)

53.41 billion kWh (2013 est.)

0 kWh (2013 est.)

9.802 billion kWh (2013 est.)

11.2 million kW (2013 est.)

92% of total installed capacity (2013 est.)

0% of total installed capacity (2013 est.)

7.6% of total installed capacity (2013 est.)

0% of total installed capacity (2013 est.)

2.979 million bbl/day (2013 est.)

2.39 million bbl/day (2013 est.)

0 bbl/day (2013 est.)

141.4 billion bbl (1 January 2013 est.)

492,800 bbl/day (2010 est.)

818,000 bbl/day (2011 est.)

3,832 bbl/day (2010 est.)

172,600 bbl/day (2010 est.)

880 million cu m (2011 est.)

1.3 billion cu m (2010 est.)

0 cu m (2011 est.)

0 cu m (2011 est.)

3.158 trillion cu m (1 January 2013 est.)

139.4 million Mt (2011 est.)

1.87 million (2012)

26.76 million (2012)

general assessment:the 2003 liberation of Iraq severely disrupted telecommunications throughout Iraq including international connections; widespread government efforts to rebuild domestic and international communications through fiber optic links are in progress; the mobile cellular market has expanded rapidly to some 27 million subscribers by the end of 2012

the number of private radio and TV stations has increased rapidly since 2003; government-owned TV and radio stations are operated by the publicly funded Iraqi Public Broadcasting Service; private broadcast media are mostly linked to political, ethnic, or religious groups; satellite TV is available to an estimated 70% of viewers and many of the broadcasters are based abroad; transmissions of multiple international radio broadcasters are accessible (2007)


Internet country code:

102 (2013)

5,279 km (the Euphrates River (2,815 km), Tigris River (1,899 km), and Third River (565 km) are the principal waterways) (2012)

2.88% of GDP (2012)