Gross National Product (GNP): $14.8bn

Exchange rates against the US$ over the last year: 0.311 Iraqi dinars (0.311)

SCORE CARD

World GNP ranking: 76th GNP per capita: $625 Balance of payments: Not available Inflation: 70% Unemployment: Not available

Strengths

Second-largest crude oil reserves in OPEC. Sizable natural gas reserves. US promises aid. Large labor force.

Weaknesses

Infrastructure devastated by war. Legacy of sanctions. War-ravaged agricultural sector.

Profile

Before 1990, Iraq was the world's third-largest oil supplier. Under sanctions, oil was produced only for domestic consumption. Limited oil exports under strict UN supervision were resumed in 1996, and in 2000 the UN permitted Iraq to buy parts and equipment for the oil industry.

The denial of Western assistance after the 1991 Gulf War stifled Iraq's economy. Agriculture, once thriving, was devastated. Manufacturing remains at a standstill. Harsh penalties, including the death sentence, failed to curb the black market or halt the sharp depreciation of the dinar. Efforts at recovery, such as the resumption of some informal economic links and the revision of UN sanctions in 2002, were undermined by the return of war in 2003. Hopes for the postwar economy will rest on the sale of oil and rebuilt infrastructure. New Saddam-less dinars came into circulation in October 2003.

EXPORTS

IMPORTS

ECONOMIC PERFORMANCE INDICATOR

From "The Financial Times World Desk Reference" © Dorling Kindersley 2004