Development and Reconstruction
Over the past 25 years, dictatorship, wars and international sanctions have undermined Iraq's institutions and crippled its economy; in 2003, Iraq's GDP fell by 41%. The economy rebounded in 2004, but annual growth slowed over the next two years. Since 2003, Iraq has taken steps to reintegrate itself into the international financial system by modernizing the banking sector and increasing private sector participation. The Government also committed to public financial management reform, making notable progress in budget design and implementation.