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06-29-2007, 04:22 AM
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Thursday, June 28, 2007
Iraq (06/07, corr.)
Bureau of Near Eastern Affairs
June 2007
Background Note: Iraq
PROFILE
OFFICIAL NAME:
Republic of Iraq
Geography
Area: 437,072 sq. km.; about the size of California.
Cities: Capital--Baghdad (5.7 million, 2004 estimate). Other cities--Basrah,
Mosul, Kirkuk, Sulaymaniyah, Irbil.
Terrain: Alluvial plains, mountains, and desert.
Climate: Mostly hot and dry.
People
Nationality: Noun and adjective--Iraqi(s).
Population (July 2007 est.): 27,499,638.
Population growth rate (2007 est.): 2.618%.
Ethnic groups: Arab 75%-80%, Kurd 15%-20%, Turcoman, Chaldean, Assyrian, or
others less than 5%.
Religions: Muslim 97%, Christian 3%, others less than 1%.
Languages: Arabic (official), Kurdish (official), Assyrian, Armenian.
Economy
GDP (2006 est.): $50.93 billion (official exchange rate).
GDP per capita (2006 est.): $1,771.
GDP real growth rate (2006 est.): 3.0%.
Rate of inflation (2006): 64.8%
Unemployment rate (2005 estimate): 27%.
Budget (FY 2007): Revenues--$33.4 billion (est.); expenditures--$41 billion
(est.)
Public debt (2006 est.): $72.9 billion.
Natural resources: Oil, natural gas, phosphates, sulfur.
Agriculture: Products--wheat, barley, rice, vegetables, cotton, dates,
cattle, sheep.
Industry: Types--petroleum, chemicals, textiles, construction materials, food
processing.
Trade: Exports (2006 est.)--$29.34 billion. Export commodities (2006 est.)
--crude oil (97%), other exports (3%). Export partners (2005)--U.S. 49.7%,
Jordan 20%, Canada 13%, Italy 10.4%. Imports (2006 est.)--$22.96 billion.
Import commodities--food, medicine, manufactured goods, refined petroleum
products. Import partners (2005)--Turkey 23.4%, Syria 23.1%, U.S. 11.7%,
Jordan 6.3%.
...One key issue that currently confronts economic policymakers in Iraq is
inflation. The year-on-year inflation rate for 2006 was 64.8%, a significant
increase over the 2005 rate of 31.6% and well above the IMF target rate of
30% annual inflation...
In an effort to infuse some stability in prices in Iraq, the Central Bank of Iraq (CBI) began to appreciate the Iraqi Dinar (ID) relative to the U.S. Dollar (USD) in November 2006. As of June 7, the CBI had appreciated the ID by 17%. It has also accelerated interest rate increases; the deposit rate is currently 20%.
Inflation in Iraq, however, is only partly a monetary problem, and is more strongly related to real sector effects, particularly bottlenecks resulting from the security situation.
The Iraqi Government is seeking to pass and implement laws to strengthen the
economy, including a hydrocarbon law to encourage development of this sector,
a revenue sharing law to equitably divide oil revenues within the nation in
line with the Iraqi constitution, and writing regulations to implement a new
foreign investment law. Controlling inflation, reducing corruption, and
implementing structural reforms such as bank restructuring and private sector
development will be key to Iraq's economic growth...
Thursday, June 28, 2007
Iraq (06/07, corr.)
Bureau of Near Eastern Affairs
June 2007
Background Note: Iraq
PROFILE
OFFICIAL NAME:
Republic of Iraq
Geography
Area: 437,072 sq. km.; about the size of California.
Cities: Capital--Baghdad (5.7 million, 2004 estimate). Other cities--Basrah,
Mosul, Kirkuk, Sulaymaniyah, Irbil.
Terrain: Alluvial plains, mountains, and desert.
Climate: Mostly hot and dry.
People
Nationality: Noun and adjective--Iraqi(s).
Population (July 2007 est.): 27,499,638.
Population growth rate (2007 est.): 2.618%.
Ethnic groups: Arab 75%-80%, Kurd 15%-20%, Turcoman, Chaldean, Assyrian, or
others less than 5%.
Religions: Muslim 97%, Christian 3%, others less than 1%.
Languages: Arabic (official), Kurdish (official), Assyrian, Armenian.
Economy
GDP (2006 est.): $50.93 billion (official exchange rate).
GDP per capita (2006 est.): $1,771.
GDP real growth rate (2006 est.): 3.0%.
Rate of inflation (2006): 64.8%
Unemployment rate (2005 estimate): 27%.
Budget (FY 2007): Revenues--$33.4 billion (est.); expenditures--$41 billion
(est.)
Public debt (2006 est.): $72.9 billion.
Natural resources: Oil, natural gas, phosphates, sulfur.
Agriculture: Products--wheat, barley, rice, vegetables, cotton, dates,
cattle, sheep.
Industry: Types--petroleum, chemicals, textiles, construction materials, food
processing.
Trade: Exports (2006 est.)--$29.34 billion. Export commodities (2006 est.)
--crude oil (97%), other exports (3%). Export partners (2005)--U.S. 49.7%,
Jordan 20%, Canada 13%, Italy 10.4%. Imports (2006 est.)--$22.96 billion.
Import commodities--food, medicine, manufactured goods, refined petroleum
products. Import partners (2005)--Turkey 23.4%, Syria 23.1%, U.S. 11.7%,
Jordan 6.3%.
...One key issue that currently confronts economic policymakers in Iraq is
inflation. The year-on-year inflation rate for 2006 was 64.8%, a significant
increase over the 2005 rate of 31.6% and well above the IMF target rate of
30% annual inflation...
In an effort to infuse some stability in prices in Iraq, the Central Bank of Iraq (CBI) began to appreciate the Iraqi Dinar (ID) relative to the U.S. Dollar (USD) in November 2006. As of June 7, the CBI had appreciated the ID by 17%. It has also accelerated interest rate increases; the deposit rate is currently 20%.
Inflation in Iraq, however, is only partly a monetary problem, and is more strongly related to real sector effects, particularly bottlenecks resulting from the security situation.
The Iraqi Government is seeking to pass and implement laws to strengthen the
economy, including a hydrocarbon law to encourage development of this sector,
a revenue sharing law to equitably divide oil revenues within the nation in
line with the Iraqi constitution, and writing regulations to implement a new
foreign investment law. Controlling inflation, reducing corruption, and
implementing structural reforms such as bank restructuring and private sector
development will be key to Iraq's economic growth...