Economy of Iran

economy-11

iran-economyEconomy – overview:
Iran’s economy is marked by statist policies, inefficiencies, and reliance on oil and gas exports, but Iran also possesses significant agricultural, industrial, and service sectors. The Iranian government directly owns and operates hundreds of state-owned enterprises and indirectly controls many companies affiliated with the country’s security forces. Distortions – including inflation, price controls, subsidies, and a banking system holding billions of dollars of non-performing loans – weigh down the economy, undermining the potential for private-sector-led growth. Private sector activity includes small-scale workshops, farming, some manufacturing, and services, in addition to medium-scale construction, cement production, mining, and metalworking. Significant informal market activity flourishes and corruption is widespread. Fiscal and monetary constraints, following the expansion of international sanctions in 2012 on Iran’s Central Bank and oil exports, significantly reduced Iran’s oil revenue, forced government spending cuts, and sparked a sharp currency depreciation. Iran’s economy contracted for the first time in two decades during both 2012 and 2013, and grew only slightly 2014. Iran continues to suffer from high unemployment and iran-economyunderemployment. Lack of job opportunities has prompted many educated Iranian youth to seek employment overseas, resulting in a significant “brain drain.” In June 2013, the election of President Hasan RUHANI generated widespread public expectations of economic improvement and greater international engagement. In connection with ongoing international negotiations over Iran’s nuclear program the limited sanctions relief for Iran provided under the Joint Plan of Action of November 2013, helped to forestall the decline in the economy in 2014.


GDP (purchasing power parity):
$1.357 trillion (2014 est.)
$1.301 trillion (2013 est.)
$1.326 trillion (2012 est.)
notedata are in 2014 US dollars
country comparison to the world: 19

GDP (official exchange rate):
$416.5 billion (2014 est.)

GDP – real growth rate:
4.3% (2014 est.)
-1.9% (2013 est.)
-6.6% (2012 est.)
country comparison to the world: 72

GDP – per capita (PPP):
$17,400 (2014 est.)
$16,700 (2013 est.)
$17,000 (2012 est.)
note: data are in 2014 US dollars
country comparison to the world: 96

Gross national saving:
34.8% of GDP (2014 est.)
39.1% of GDP (2013 est.)
43.8% of GDP (2012 est.)
country comparison to the world: 14

GDP – composition, by end use:
household consumption: 50.6%
government consumption: 10.7%
investment in fixed capital: 26.2%
investment in inventories: 7.2%
exports of goods and services: 24.2%
imports of goods and services: -18.9%
(2014 est.)

GDP – composition, by sector of origin:
agriculture: 9.2%
industry: 37.7%
services: 53.1% (2014 est.)

Agriculture – products:
wheat, rice, other grains, sugar beets, sugarcane, fruits, nuts, cotton; dairy products, wool; caviar

Industries:
petroleum, petrochemicals, gas, fertilizers, caustic soda, textiles, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), ferrous and nonferrous metal fabrication, armaments

Industrial production growth rate:
4.9% (2014 est.)
country comparison to the world: 56

Labor force:
28.4 million
note: shortage of skilled labor (2014 est.)
country comparison to the world: 22

Labor force – by occupation:
agriculture: 16.3%
industry: 35.1%
services: 48.6% (2013 est.)

Unemployment rate:
10.3% (2014 est.)
10.4% (2013 est.)
note: data are according to the Iranian Government
country comparison to the world: 115

Population below poverty line:
18.7% (2007 est.)

Household income or consumption by percentage share:
lowest 10%: 2.6%
highest 10%: 29.6% (2005)

Distribution of family income – Gini index:
44.5 (2006)
country comparison to the world: 46

Budget:
revenues: $62.11 billion
expenditures: $67.07 billion (2014 est.)
Taxes and other revenues:
14.9% of GDP (2014 est.)
country comparison to the world: 194

Budget surplus (+) or deficit (-):
-1.2% of GDP (2014 est.)
country comparison to the world: 76

Public debt:
10.7% of GDP (2014 est.)
10.4% of GDP (2013 est.)
note: includes publicly guaranteed debt
country comparison to the world: 160

Fiscal year:
21 March – 20 March

Inflation rate (consumer prices):
15.5% (2014 est.)
34.7% (2013 est.)
note: official Iranian estimate
country comparison to the world: 219

Central bank discount rate:
NA%

Commercial bank prime lending rate:
14% (31 December 2014 est.)
11% (31 December 2013 est.)
country comparison to the world: 47

Stock of narrow money:
$42.59 billion (31 December 2014 est.)
$43.57 billion (31 December 2013 est.)
country comparison to the world: 52

Stock of broad money:
$273.6 billion (31 December 2014 est.)
$222.3 billion (31 December 2013 est.)
country comparison to the world: 36

Stock of domestic credit:
$44.83 billion (31 December 2014 est.)
$42.7 billion (31 December 2013 est.)
country comparison to the world: 63

Market value of publicly traded shares:
$172 billion (31 December 2013 est.)
$140.8 billion (31 December 2012)
$107.2 billion (31 December 2011 est.)
country comparison to the world: 36

Current account balance:
$15.94 billion (2014 est.)
$26.52 billion (2013 est.)
country comparison to the world: 19

Exports:
$86.47 billion (2014 est.)
$93.12 billion (2013 est.)
country comparison to the world: 41

Exports – commodities:
petroleum 80%, chemical and petrochemical products, fruits and nuts, carpets, cement, ore

Exports – partners:
China 29%, India 11.9%, Turkey 10.4%, Japan 6.5%, South Korea 4.8% (2014)

Imports:
$65.08 billion (2014 est.)
$61.16 billion (2013 est.)
country comparison to the world: 46

Imports – commodities:
industrial supplies, capital goods, foodstuffs and other consumer goods, technical services

Imports – partners:
UAE 30.6%, China 25.5%, Algeria 8.3%, India 4.6%, South Korea 4.4%, Turkey 4.1% (2014)

Reserves of foreign exchange and gold:
$93.95 billion (31 December 2015 est.)
$109 billion (31 December 2014 est.)
country comparison to the world: 25

Debt – external:
$6.922 billion (31 December 2014 est.)
$7.646 billion (31 December 2013 est.)
country comparison to the world: 119

Stock of direct foreign investment – at home:
$42.47 billion (31 December 2014 est.)
$40.36 billion (31 December 2013 est.)
country comparison to the world: 60

Stock of direct foreign investment – abroad:
$4.33 billion (31 December 2014 est.)
$3.725 billion (31 December 2013 est.)
country comparison to the world: 68

Exchange rates:
Iranian rials (IRR) per US dollar –
25,912.3 (2014 est.)
25,912.3 (2013 est.)
12,175.5 (2012 est.)
10,616.3 (2011 est.)
10,254.18 (2010 est.)

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