"There have been measurable but uneven improvements in Iraq’s security situation since our last National Intelligence Estimate on Iraq in January 2007. The steep escalation of rates of violence has been checked for now, and overall attack levels across Iraq have fallen during seven of the last nine weeks. Coalition forces, working with Iraqi forces, tribal elements, and some Sunni insurgents, have reduced al-Qa’ida in Iraq’s (AQI) capabilities, restricted its freedom of movement, and denied it grassroots support in some areas. However, the level of overall violence, including attacks on and casualties among civilians, remains high; Iraq’s sectarian groups remain unreconciled; AQI retains the ability to conduct high-profile attacks; and to date, Iraqi political leaders remain unable to govern effectively. There have been modest improvements in economic output, budget execution, and government finances but fundamental structural problems continue to prevent sustained progress in economic growth and living conditions. " Source: Office of the Director of National Intelligence
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