The economy of Iraq
Iraq’s economy is highly dependent on oil, and in other words, it is based on oil economy. About 95% of Iraq’s total income comes from the sale of oil in this country. Iraq’s numerous wars and long-term international sanctions have caused the Iraqi economy to lag behind.
Iraq is predicted to have economic growth of 9.5% in 2022, placing it second behind Ghana, which is predicted to have economic growth of 47.2%.
The gradual process of recovery and overcoming the twin shocks of Covid-19 and declining oil prices has started for the Iraqi economy, and the expansion of the nation’s oil and non-oil economies is proceeding as planned.
Iraq’s GDP growth in 2022 will be the highest among Arab nations, at 9%, according to reports from the World Bank. Iraq’s adherence to production reduction commitments within the framework of OPEC+ is the reason for the country’s 4% (annual) increase in gross domestic oil production.
Iraq’s economy will rise by 8.9% in 2022 as a result of the lifting of OPEC+ production limitations and the country’s return to producing 4.6 million barrels of oil per day.
Some of the mother industries of Iraq
Oil and Gas
With 4.6 million barrels of oil produced each day and 3.3 million barrels exported, Iraq is the second-largest OPEC oil producer behind Saudi Arabia.
Iraq’s income was 88 billion dollars in the first nine months of 2022, according to official statistics, and it is anticipated to reach 120 billion dollars by the end of the year.
This nation intends to raise its daily crude oil production from the present 4.6 million barrels to 12 million barrels with the completion of contracts and the start-up of oil projects.
Iraqi gas fields are one of the most important sources of energy supply in Iraq. The amount of these gas reserves is estimated between 10 and 15 trillion cubic meters of natural gas, which makes this country one of the main gas producing countries in the world.
Iraq’s steel industry is primarily split into three sectors: semi-state, private, and state. Private contractors work on residential and commercial construction projects in the private sector. The operations of ministries like the Ministry of Housing and the Ministry of Commerce are seen as governmental, whereas pilgrimage centers and investment boards are regarded as semi-governmental.
Iraq possesses advantageous deposits of sedimentary iron, iron, and manganese in the province of Anbar as well as in the northern regions of Duhok and Sulaymaniyah.
Iraq’s entire local steel production barely covers 30% of the nation’s demands at the moment; the remaining 70% is imported, primarily from Iran, China, and Turkey.
For agricultural purposes, the land of Iraq is fertile and suitable. Up until the start of 2022, Iraq has a total of around 48 million dunums of arable land (the unit of land area measurement). However, the amount of land that has been designated for cultivation in 2022 and during the winter months does not exceed 12 million dunums, and the majority of it has been used for the growing of wheat, barley, and corn. In contrast, Iraq’s orchards, which produce a variety of fruits, occupy more than one million dunums of land, and its groves occupy about 5 million dunums of the country’s total land area.