facilities by Iran, led the government to implement austerity measures
and to borrow heavily and later reschedule foreign debt payments; Iraq
suffered economic losses of at least $100 billion from the war. After
the end of hostilities in 1988, oil exports gradually increased with
the construction of new pipelines and restoration of damaged
facilities. Agricultural development remained hampered by labor
shortages, salinization, and dislocations caused by previous land
reform and collectivization programs. The industrial sector, although
accorded high priority by the government, also was under financial
constraints. Iraq's seizure of Kuwait in August 1990, subsequent
international economic embargoes, and military action by an
international coalition beginning in January 1991 drastically changed
the economic picture. Industrial and transportation facilities, which
suffered severe damage, have been partially restored. Oil exports are
at 25% of the prewar level following the implementation of UN Security
Council Resolution 986 in December 1996. Shortages of spare parts
continue. The UN-sponsored economic embargo has reduced exports and
imports and has contributed to the sharp rise in prices. The Iraqi
Government has been unwilling to abide by UN resolutions so that the
economic embargo could be removed. The government's policies of
supporting large military and internal security forces and of
allocating resources to key supporters of the regime have exacerbated
shortages. In accord with a UN resolution Iraq agreed to an
oil-for-food deal in 1996, under which it would export $2 billion
worth of oil in exchange for badly needed food and medicine. The first
oil was pumped in December 1996, and the first supplies of food and
medicine should arrive in March 1997. Per capita output for 1995-96
and living standards are well below the 1989-90 level, but any
estimates have a wide range of error.

GDP: purchasing power parity - $42 billion (1996 est.)

GDP - real growth rate: 0% (1996 est.)

GDP - per capita: purchasing power parity - $2,000 (1996 est.)

GDP - composition by sector:
agriculture: NA%
industry: NA%
services: NA%

Inflation rate - consumer price index: NA%

Labor force:
total: 4.4 million (1989)
by occupation: services 48%, agriculture 30%, industry 22%
note : severe labor shortage; expatriate labor force was about
1,600,000 (July 1990); since then, it has declined substantially

Unemployment rate: NA%

Bu