Editing Economy of Iraq (section)

=== Sanctions ===
Iraq's seizure of [[Invasion of Kuwait|Kuwait]] in August 1990, subsequent [[Iraq sanctions|international economic sanctions on Iraq]], and damage from military action by an international coalition beginning in January 1991, drastically reduced economic activity. The regime exacerbated shortages by supporting large military and internal security forces and by allocating resources to key supporters of the [[Arab Socialist Ba'ath Party – Iraq Region|Ba'ath Party]]. The implementation of the [[United Nations|UN]]'s [[Oil for Food program]] in December 1996 helped improve economic conditions. For the first six six-month phases of the program, Iraq was allowed to export increasing amounts of oil in exchange for food, medicine, and other humanitarian goods. In December 1999, the [[United Nations Security Council|UN Security Council]] authorized Iraq to export as much oil as required to meet humanitarian needs. Per capita, food imports increased substantially, while medical supplies and health care services steadily improved, though per capita economic production and living standards were still well below their prewar level.

Iraq changed its oil [[reserve currency]] from the [[United States dollar|U.S. dollar]] to the [[euro]] in 2000. However, 28% of Iraq's export revenues under the program were deducted to meet UN Compensation Fund and UN administrative expenses. The drop in [[Gross Domestic Product|GDP]] in 2001 was largely the result of the [[Early 2000s recession|global economic slowdown]] and lower oil prices.