Iraq - Economic sectors



Iraq's economic sectors reflect the state of devastation that the country has endured as a result of war. The economy has traditionally been heavily dependent on the oil sector, which accounted for more than 60 percent of the GDP before the Gulf War. The oil sector's contribution to the GDP, however, greatly diminished in the immediate years after the war, but its contribution to GDP has increased since the 1996 introduction of the United Nations oil-for-food program, which allows limited oil exports in return for food and medicine. Iraq in 1991 exported less than 10 percent of its pre-war oil export levels. By 2001, Iraq had regained three-quarters of the pre-war oil export levels. However, the UN's control

of oil exports removed these revenues as a source of the GDP.

In the post-Gulf War era, services was the largest contributor to the GDP at 81 percent in 1993. Industry contributed 13 percent in the GDP, while agriculture accounted for 6 percent of the GDP. Real GDP was cut by around 63 percent in 1991, a direct result of the war and subsequent sanctions. The GDP was estimated in 1999 to be equivalent to US$59.9 billion. The country's major economic sectors witnessed a serious decline in 1990-91 because of the Gulf War, and continued allied bombardment of key Iraqi infrastructure facilities, including power generators and communications equipment. The manufacturing sector was hit by the shortage of imported raw materials and spare parts, while the collapse of the country's irrigation system in the aftermath of the war has left the agricultural sector in dire straits.

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