Iraq Country Profile

Productivity growth, diversification, and structural change in the Arab States (Iraq)

This country snapshot provides a historical overview of Iraq's labour productivity trends compared with other non-GCC Arab economies and the global economy.

Briefing note | 19 February 2023
In addition to highlighting the position of Iraq relative to other Arab economies and global frontiers in terms of labour productivity, this snapshot documents the trends in labour productivity and multifactor productivity growth and the relative contributions of labour productivity and employment growth to aggregate output growth. Given the importance of the structure of an economy in determining its productivity trends, both due to technological change and productivity growth within industries, and the potential for enhancing productivity by shifting resources to more productive uses, this country profile also examines the evolution of the structure of Iraq's economy, in terms of industry composition of employment and output compared to the Arab economies’ average. Finally, using the existing evidence on productivity trends, a few recommendations for future productivity improvement in the country are derived.