Economy of Iraq

Iraq's economy is dominated by the oil sector, which has provided about 95% of foreign exchange earnings in modern times. In the 1980s, financial problems caused by massive expenditures in the eight-year war with Iran and damage to oil export facilities by Iran led the government to implement austerity measures, borrow heavily, and later reschedule foreign debt payments; Iraq suffered economic losses of at least $80 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.

Since mid-2009, oil export earnings have returned to levels seen before Operation New Dawn and government revenues have rebounded, along with global oil prices. In 2011 Baghdad probably will increase oil exports above the current level of 1,900,000 bbl (300,000 m³) per day as a result of new contracts with international oil companies, but is likely to fall short of the 2,400,000 barrels (380,000 m³) per day it is forecasting in its budget. Iraq's recent contracts with major oil companies have the potential to greatly expand oil revenues, but Iraq will need to upgrade its oil processing, pipeline, and export infrastructure to enable these deals to reach their potential.

Iraq

Coordinates: 33°N 44°E / 33°N 44°E / 33; 44

Iraq (/ɪˈræk/, ⁱ/ɪˈrɑːk/, or /aɪˈræk/; Arabic: العراق‎ al-‘Irāq, Kurdish: Êraq), officially the Republic of Iraq (Arabic:  جمهورية العراق  Jumhūrīyat al-‘Irāq; Kurdish: كۆماری عێراق‎ Komar-i ‘Êraq), is a country in Western Asia. The country borders Turkey to the north, Iran to the east, Kuwait to the southeast, Saudi Arabia to the south, Jordan to the southwest, and Syria to the west. The southern part of Iraq is within the Arabian Peninsula. The capital, Baghdad, is in the centre of the country and its largest city. The largest ethnic groups in Iraq are Arabs and Kurds. Other ethnic groups include Assyrians, Turkmen, Shabakis, Yazidis, Armenians, Mandeans, Circassians, and Kawliya. Around 95% of the country's 36 million citizens are Shia or Sunni Muslims, with Christianity, Yarsan, Yezidism, and Mandeanism also present.

Iraq has a narrow section of coastline measuring 58 km (36 mi) on the northern Persian Gulf and its territory encompasses the Mesopotamian Alluvial Plain, the northwestern end of the Zagros mountain range, and the eastern part of the Syrian Desert. Two major rivers, the Tigris and Euphrates, run south through the centre of Iraq and flow into the Shatt al-Arab near the Persian Gulf. These rivers provide Iraq with significant amounts of fertile land.