The 'Islamic State' feels the pinch as oil production falls and its population shrinks

New research claims that it has lost one fifth of its territory since mid-2015...

The 'Islamic State' feels the pinch as oil production falls and its population shrinks

Khalid Mohammed / AP / A mother and her children flee their homes during clashes between Iraqi security forces and an Islamic State group

Income and population figures in the so-called 'Islamic State' have declined dramatically since the middle of last year according to new research.

The latest publication from US analysis firm IHS says that the self-proclaimed caliphate's monthly revenue has fallen from close to $80m in the middle of last year to $56m per month in March.

Its daily oil output has dropped from 33,000 barrels to 21,000 barrels, as a number of production facilities were hit during air strikes.

The total area controlled by the Sunni Muslim group has fallen by 22% while its population has declined by a third, shrinking from 9 million to 6 million.

The report adds that the group has begun taking cash payments to pardon condemned prisoners, it has also introduced a series of new taxes on activities such as satellite dish installation and leaving city boundaries to help to bring in extra income.

IHS senior analyst Ludovico Carlino commented: "Islamic State is still a force in the region, but this drop in revenue is a significant figure and will increase the challenge for the group to run its territory in the long term."