y massive expenditures in the eight-year war with Iran and damage
to oil export 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 remain at less than 5% of the
previous level. Shortages of spare parts continue. Living standards
deteriorated even further in 1994 and 1995; consumer prices have
more than doubled in both 1994 and 1995. 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 can 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 brief, per capita output for
1994-95 is well below the 1989-90 level, but any estimate has a wide
range of error.

GDP: purchasing power parity - $41.1 billion (1995 est.)

GDP real growth rate: NA%

GDP per capita: $2,000 (1995 est.)

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

Inflation rate (consumer prices): NA%

Labor force: 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%

Budget:
revenues: $NA
expenditures: $NA, including capital expenditures of $NA

Industries: petroleum, chemicals, textiles, construction
materials, food process