Agriculture is the most important sector in the Babil’s economy, accounting for 42% of the governorate’s GDP and providing 44% of jobs. The success of the sector is due to the availability of arable land for dates, maize and legumes and plentiful irrigation from the Euphrates. The provincial government is aiming to expand the sector by encouraging investment, usage of modern farming techniques and skills development. However, 50% of Babil’s cropland has suffered a reduction in crop coverage two years in succession due to drought. Industry, commerce and tourism have also been identified as potential areas for expansion.

In spite of the economic potential of the governorate, poverty and child labour are widespread, particularly outside Hilla, the governorate capital. 41% of the population is poor, and 11% of all children aged 5-14 are in employment, rising to 19% among rural girls. While unemployment is below the national average of 15%, under half (46%) of all those employed in Babil receive wages for their work, the lowest proportion in Iraq. The informality of the agricultural sector, weakness of other sectors and relatively low percentage of workers employed in the public sector (16%) may be contributing to the high poverty rates.

Households in Babil often lack access to essential services. Access to safe water is a problem in all districts except Hilla, and electricity supplies are poor in all districts. The governorate has a high infant mortality rate (55 for every 1,000 live births). Just 55% of rural girls aged 6-11 are enrolled in primary education. The priority needs of IDPs displaced during the violence of 2006-2007 are access to job opportunities, food and shelter. 82% of IDP families have no wage income.