Across a range of services, the government's ability to provide for its citizens is declining, it says.Four years in. Hundreds of thousands dead. This is, by far, the largest blunder in the history of the United States Government.
Healthcare is "stretched to the limit" because of the daily violence, and food shortages have led to an increase in malnutrition.
Power shortages are increasing and vital repairs to the country's infrastructure are hampered by security constraints, the report adds.
It says that around one third of the population lives in poverty, while more than 5% live in extreme poverty.
"The conflict in Iraq is inflicting immense suffering on the entire population," the report says.
"Civilians bear the brunt of the relentless violence and the extremely poor security conditions that are disrupting the lives and livelihoods of millions.
"Unemployment and poverty levels are rising and many families continue to rely on government food distributions to cover their immediate needs.
"Much of Iraq's vital infrastructure is in a poor state of repair, owing to lack of maintenance and because security constraints have impeded repair work on electrical power grids, water and sanitation systems, medical facilities and other essential facilities."
Oh, by the way, catch Osama yet?