ut 95% of foreign exchange earnings.
Although looting, insurgent attacks, and sabotage have undermined
economy rebuilding efforts, economic activity is beginning to pick
up in areas recently secured by the US military surge. Oil exports
are around levels seen before Operation Iraqi Freedom, and total
government revenues have benefited from high oil prices. Despite
political uncertainty, Iraq is making some progress in building the
institutions needed to implement economic policy and has negotiated
a debt reduction agreement with the Paris Club and a new Stand-By
Arrangement with the IMF. Iraq has received pledges for $13.5
billion in foreign aid for 2004-07 from outside of the US, more than
$33 billion in total pledges. The International Compact with Iraq
was established in May 2007 to integrate Iraq into the regional and
global economy, and the Iraqi government is seeking to pass laws to
strengthen its economy. This legislation includes a hydrocarbon law
to establish a modern legal framework to allow Iraq to develop its
resources and a revenue sharing law to equitably divide oil revenues
within the nation, although both are still bogged down in
discussions. The Central Bank has been successful in controlling
inflation through appreciation of the dinar against the US dollar.
Reducing corruption and implementing structural reforms, such as
bank restructuring and developing the private sector, will be key to
Iraq's economic success.

GDP (purchasing power parity):

$102.4 billion (2007 est.)

GDP (official exchange rate):

$60.12 billion (2007 est.)

GDP - real growth rate:

5.9% (2007 est.)

GDP - per capita (PPP):

$3,700 (2007 est.)

GDP - composition by sector:

agriculture: 5%
industry: 68%
services: 27% (2006 est.)

Labor force:

7.4 million (2004 est.)

Labor force - by occupation:

agriculture: NA%
industry: NA%
services: NA%

Unemployment rate:

18% to 30% (2006 est.)

Population below poverty line:

NA%

Household income or consumption by percentage share:

lowest 10%: NA%
highest 10%: NA%

Budget:

revenues: $42.3 billion
expenditures: $48.4 billion (FY08 est.)

Fiscal year:

calendar year

Inflation rate (consumer prices):

4.7% (2007 est.)

Central bank discount rate:

20% (31 December 2007)

Commercial bank prime lending rate:

19.74% (31 December 2007)

Stock of money:

$18.81 billion (31 December 2007)

Stock of quas