ABSTRACT
This chapter provides an outline of the economic flow in Iraq, Gross Domestic Products and its compositions; consumption, investment. It discusses the structural changes in the Iraqi economy and explores the major macroeconomics development problems such as inflation and manpower. Diversification of the economy has been strongly encouraged, recognising the need to conserve deplorable oil reserves and to maximise, over the long term, the earnings from oil. The data presented provide a clear picture of an economy achieving rapid industrial development, with the lead being taken by the government sector. The agricultural sector has a special role in the Iraqi economy as it has in most of the developing countries being the main source for meeting some of the domestic demand for food and being, the main source of raw materials for the domestic industries like tobacco, dairy products. Iraqi entrepreneurs are accustomed to employing their capital in trade, rather than industry, and in investment in small and quick-yielding projects.
