Introduction Key Economic Facts Risk Assessment (Provided by Coface) Iraq is a country in the Middle East bordering the Persian Income Level (by per capita Upper Middle Income Country rating: E - The highest-risk political and economic Gulf. Neighboring countries include Iran, Jordan, Kuwait, GNI): situation and the most difficult business environment. Saudi Arabia, Syria, and Turkey. Iran has a strategic Level of Development: Developing Corporate default is likely. location on Shatt al Arab waterway and at GDP, PPP (current international $446.66 billion (2019) the head of the Persian Gulf. Two major $): Business Climate rating: E - The highest possible risk in rivers, the Tigris and Euphrates, run GDP growth (annual %): 4.40% (2019) terms of business climate. Due to a lack of available through the center of Iraq, flowing from GDP per capita, PPP (current $11,362.69 (2019) financial information and an unpredictable legal system, northwest to southeast. The government international $): doing business in this country is extremely difficult. system is a parliamentary republic; the chief of state is the Manufacturing, value added (% 2.05% (2016) Strengths president, and the head of government is the prime minister. of GDP): Iraq has a mixed economic system which includes some Current account balance (BoP, $15.76 billion (2019) • World’s fourth-largest proven crude oil reserves, private freedom, combined with current US$): second-largest OPEC producer, and fourth-largest weak centralized economic Inflation, consumer prices 0.37% (2018) producer worldwide (annual %): planning and government • Low oil extraction costs regulation. Iraq is a member of Labor force, total: 10,808,616 (2020) • Strong growth in the labor force the League of Arab States Unemployment, total (% of 12.82% (2020) (Arab League). total labor force) (modeled ILO • International financial support (IMF and bilateral estimate): loans) Imports of goods and services $91.99 billion (2019) (current US$): Weaknesses Location: Western Asia Exports of goods and services $89.08 billion (2019) • Under-diversified economy, highly dependent on the Capital City: Baghdad (+3 GMT) (current US$): oil sector Chief of State: President Barham Salih • Severe tensions between the ruling Shia majority and Head of Govt.: Prime Minister Mustafa al-Kadhimi the rest of the country Currency: Iraqi Dinar (IQD) GDP Composition % Agriculture Services Industry Manufacturing • Tensions with autonomous Kurdistan, which is a Major Languages:
Arabic (official), Kurdish (official), Turkmen (a Turkish dialect), Syriac major contributor to the oil sector (Neo-Aramaic), and Armenian are 49 50 • Cost of reconstruction and assistance to victims official in areas where native speakers of these languages constitute a 1 0 following the armed conflict majority of the population
*Although Manufacturing is included in the Industry figures, it is also separately • Small GDP share of non-oil and gas private sector Primary Religions:Muslim (official) 95-98% (Shia 64- reported because it plays a critical role in economy. • Weak and limited banking sector 69%, Sunni 29-34%), Christian 1% Rankings (includes Catholic, Orthodox, • Deficiencies in institutions, as well as in education, Protestant, Assyrian Church of the Index Rank health, and welfare systems East), other 1-4%
Corruption Perceptions Index 162 / 180 • Widespread corruption Calling Code: 964 International Logistics Performance Index (LPI) 147 / 160 Voltage: 230 KOF Index of Globalization 149 / 185 U.S. Embassy Open Budget Index 103 / 115 Key Websites U.S. Embassy Baghdad Al-Kindi Street Main Government Page: cabinet.iq International Zone Commerce Ministry: mot.gov.iq Baghdad, Iraq Investment Promotion investpromo.gov.iq Phone: 0760-030-3000 Agency: https://iq.usembassy.govCountry Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV