Economy of Iraq

The economy of Iraq is dominated by the oil sector, which has provided about 99.7% of foreign exchange earnings during its modern history. As of 2021, the oil sector provides about 92% of foreign exchange earnings. Iraq's hitherto agrarian economy underwent rapid development following the 14 July Revolution (1958) which overthrew the Hashemite Iraqi monarchy. It had become the third-largest economy in the Middle East by 1980. This occurred in part because of the Iraqi government's successful industrialization and infrastructure development initiatives in the 1970s, which included irrigation projects, railway and highway construction, and rural electrification. In the 1980s, financial problems caused by massive expenditures in the Iran-Iraq War and damage to oil export facilities by Iran led the Ba'athist government to implement austerity measures, to borrow heavily, and to later reschedule foreign debt payments. Iraq suffered economic losses of at least $80 billion from the war. 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 Persian Gulf War. GDP dropped to one-fourth of the country's 1980 gross domestic product and continued to decline under postwar international sanctions, until receiving aid from the U.N. Oil-for-Food Programme in 1997. The Coalition Provisional Authority made efforts to modernize Iraq's economy after the 2003 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during this time, though growth was stunted by the insurgency, economic mismanagement, and oil shortages caused by outdated technology. Since mid-2009, oil export earnings have returned to levels seen before Operation New Dawn. Government revenues have rebounded, along with global oil prices. In 2011, Baghdad would increase oil exports above their then-current level of per day as a result of new contracts with international oil companies.

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Related concepts (12)

Economy of Iraq

Iraq

Iraq, officially the Republic of Iraq, is a country in the Middle East. It is a federal parliamentary republic that consists of 19 governorates. The country is bordered by Turkey to the north, Iran to the east, the Persian Gulf and Kuwait to the southeast, Saudi Arabia to the south, Jordan to the southwest and Syria to the west. The capital and largest city is Baghdad. The Iraqi people are diverse; mostly Arabs, as well as Kurds, Turkmen, Assyrians, Armenians, Yazidis, Mandaeans, Persians and Shabakis with similarly diverse geography and wildlife.

Iraq War

The Iraq War was a protracted armed conflict in Iraq from 2003 to 2011 that began with the intervention in Iraq by the United States-led coalition that overthrew the Iraqi government of Saddam Hussein. The conflict continued for much of the next decade as an insurgency emerged to oppose the coalition forces and the post-invasion Iraqi government. US troops were officially withdrawn in 2011. The United States became re-involved in 2014 at the head of a new coalition, and the insurgency and many dimensions of the armed conflict are ongoing.