IRAQ

Iraq: Current Economic Status

Improving security environment and foreign investment are helping to spur economic activity

Foreign investment

Economy dominated by oil industry

Inflation has remained in check past 6 years Dependent on imported food sources as result of

food-for-oil program

Iraq: Industry Oil dependent (petroleum and natural gas)

refineries petrochemical products

(plastics, other chemical products) Agriculture (Tigris and Euphrates river valleys)

wheat, barley, rice, vegetables, dates, cotton cattle, sheep, poultry

Building Materials limestone Concrete

Minerals sulfur phosphates

Iraq: Imports and Exports Exports

(US 21.4%, India 21.1%, China 13.8%, South Korea 11.2%, Canada 4.8%, Italy 4.5%, Spain 4.3%)

Crude oil (84%) Crude materials excluding fuels Food and live animals

Imports(Turkey 27.8%, Syria 15.9%, China 12.6%, US 5.2%, South Korea 4.8%)

Food Medicine/medical supplies Manufactured goods

Iraq: Statistics

Labor force - approx. 9 million participants

Unemployment – 16%

25% of population under poverty line

Inflation – 6% GDP - $242.5 billion at 53rd in the world (growing

at 8.4% per year) 90% of total revenue from oil

Iraq: Economic Projection Long-term success dependent upon

government policy reforms Control unemployment Deregulation to spur private investment Central bank stability Stability and security of government Eliminate corruption within the government Address skilled labor shortages

Continued growth in construction, retail, and energy sectors (rebuilding efforts)

Need to upgrade oil infrastructure in order to boost production