Economy of Iran

Economy of Iran
Tehran province hosts 45% of Iran's industries.[1]
CurrencyIranian rial (IRR,﷼)[note 1]
March 21–20
Trade organizations
ECO, OPEC, GECF, WTO (observer), SCO, Brics and others
Country group
Statistics
PopulationIncrease 88'386'937 (2024)[4]
GDP
GDP rank
GDP growth
  • 4.7% (2021)
  • 3.0% (2022)
  • 2.0% (2023)[6]
GDP per capita
  • Increase $5,013 (nominal; 2024 est.)[5]
  • Increase $19,607 (PPP; 2024 est.)[5]
GDP per capita rank
GDP by sector
GDP by component
  • Household consumption: 49.7%
  • Government consumption: 14%
  • Investment in fixed capital: 20.6%
  • Investment in inventories: 14.5%
  • Exports of goods and services: 26%
  • Imports of goods and services: −24.9%
  • (2017 est.)[7]
Negative increase 40% (2022)[8]
NA[7]
Population below poverty line
Positive decrease 38.8 medium (2018)[11]
Decrease 24 out of 100 points (2023, 149th rank)
Labor force
  • Increase 27,358,987 (2019)[13]
  • Increase 39.1% employment rate (2018)[14]
Unemployment
  • Negative increase 8.90% (Dec 2021)[15]
  • Urban households:
  • IRR 17 million, monthly (FY 2013)[16]
  • Rural households:
  • IRR 10 million, monthly (FY 2013)[16]
Gross savings41.758% of GDP (2022)[17]
Main industries
petroleum, petrochemicals, fertilizers, caustic soda, car manufacture, parts, pharmaceuticals, home appliances, electronics, telecommunications, energy, power, textiles, construction, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), ferrous and non-ferrous metal fabrication, armaments
External
ExportsDecrease $107.43 billion (2018)[18]
Export goods
petroleum (56%),[18] chemical and petrochemical products, automobiles, fruits and nuts, carpets
Main export partners
ImportsNegative increase $54.46 billion (2018)[20]
Import goods
industrial raw materials and intermediate goods (46%), capital goods (35%), foodstuffs and other consumer goods (19%), technical services
Main import partners
FDI stock
  • Increase $50.33 billion (December 31, 2017, est.)[7]
  • Abroad: Increase $5.226 billion (December 31, 2017, est.)[7]
  • Increase $32.031 billion (2022)[17]
  • 1.623% of GDP (2022)[17]
Positive decrease $9.142 billion (December 2022)[22]
Public finances
  • Positive decrease IRR 34,091,132 billion (2022)[17]
  • 34.172% of GDP (2022)[17]
+3% (of GDP) (2022 est.)[23]
RevenuesIRR 8,298,940 billion (2022)[17]
ExpensesIRR 12,487,173 billion (2022)[17]
Decrease $85.2 billion (December 31, 2020, est.)[23]
All values, unless otherwise stated, are in US dollars.


Iran is a mixed economy with a large public sector. Some 60% of Iran's economy is centrally planned.[25][needs update] Iran's economy is characterized by its hydrocarbon, agricultural, and service sectors, in addition to manufacturing and financial services,[26] with over 40 industries directly involved in the Tehran Stock Exchange. With 10% of the world's proven oil reserves and 15% of its gas reserves, Iran is considered an "energy superpower".[27][28][29][30][31]

A unique feature of Iran's economy is the presence of large religious foundations called bonyads, whose combined budgets represent more than 30 percent of central government spending.[32]

Price controls and subsidies, particularly on food and energy,[33][34] are heavily prominent in the economy. Contraband, administrative controls, widespread corruption,[35][36] and other restrictive factors undermine private sector-led growth.[37] The government's 20-year vision, as of 2020, involves market-based reforms reflected in the government's, with a five year development plan, 2016 to 2021, focusing on "a resilient economy" and "progress in science and technology".[38] Most of Iran's exports are oil and gas, accounting for a majority of government revenue in 2010.[39] In March 2022, the Iranian parliament under the then new president Ebrahim Raisi decided to eliminate a major subsidy for importing food, medicines and animal feed, valued at $15 billion in 2021.[40] Also in March 2022, 20 billion tons of basic goods exports from Russia including vegetable oil, wheat, barley and corn were agreed.[40]

Iran's educated population, high human development, constrained economy and insufficient foreign and domestic investment prompted an increasing number of Iranians to seek overseas employment, resulting in a significant "brain drain".[37][41][42][43] However, in 2015, Iran and the P5+1 reached a deal on the nuclear program which removed most international sanctions. Consequently, for a short period, the tourism industry was significantly improved and the inflation of the country was decreased[citation needed] though US withdrawal from the JCPOA in 2018 hindered the growth of the economy again and increased inflation.[citation needed]

GDP contracted in 2018 and 2019, but a modest rebound was expected in 2020.[44] Challenges include a COVID-19 outbreak starting in February 2020 and US sanctions reimposed in mid-2018, increased unemployment due to the sanctions,[44] inflation,[38][44] a "chronically weak and undercapitalised" banking system,[44][45] and an "anemic" private sector.[44] Iran's currency, the Iranian rial, has fallen,[46] and Iran has a relatively low rating in "Economic Freedom",[47][44] and "ease of doing business".[48]

  1. ^ Anthony H. Cordesman (September 23, 2008). "The US, Israel, the Arab States and a Nuclear Iran. Part One: Iranian Nuclear Programs" (PDF). Center for Strategic and International Studies. Archived from the original (PDF) on August 6, 2010. Retrieved September 25, 2010.
  2. ^ "World Economic Outlook Database, October 2022". IMF.org. International Monetary Fund. Retrieved November 6, 2022.
  3. ^ "Iran, Islamic Rep". World Bank. Retrieved September 16, 2022.
  4. ^ "Country Summary - Iran". cia.gov. CIA. Retrieved March 15, 2024.
  5. ^ a b c d "World Economic Outlook Database, October 2024". IMF.org. International Monetary Fund. Retrieved November 11, 2024.
  6. ^ "WORLD ECONOMIC OUTLOOK 2022 OCT Countering the Cost-of-Living Crisis". www.imf.org. International Monetary Fund. p. 43. Retrieved October 11, 2022.
  7. ^ a b c d e Cite error: The named reference CIAWFIR was invoked but never defined (see the help page).
  8. ^ "Iran - inflation rate 2027".
  9. ^ "Iخط فقر در ایران دامنه‌دارتر شده است". Deutsche Welle (in Persian).
  10. ^ "Poverty headcount ratio at $6.85 a day (2017 PPP) (% of population) - Iran, Islamic Rep". data.worldbank.org. World Bank.
  11. ^ "Iran Gini-Koeffizient, 2017-2018 - knoema.com". Knoema (in German). Retrieved December 15, 2019.
  12. ^ a b "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme.
  13. ^ "Labor force, total – Iran, Islamic Rep". data.worldbank.org. World Bank. Retrieved November 3, 2019.
  14. ^ "Employment to population ratio, 15+, total (%) (national estimate) – Iran, Islamic Rep". data.worldbank.org. World Bank. Retrieved November 3, 2019.
  15. ^ "Iran Unemployment Rate". CEIC Data. Retrieved July 28, 2019.
  16. ^ a b چکیده نتایج طرح آمارگیری هزینه و درامد خانوارهای شهری و روستایی - ۱۳۹۲ (PDF) (in Persian). Statistical Center of Iran. July 13, 2014. Archived (PDF) from the original on December 4, 2014. Retrieved December 4, 2014.
  17. ^ a b c d e f g "Report for Selected Countries and Subjects: October 2022". imf.org. International Monetary Fund.
  18. ^ a b Cite error: The named reference OPEC 2019 was invoked but never defined (see the help page).
  19. ^ "Foreign trade partners of Iran". The Observatory of Economic Complexity. Retrieved March 13, 2024.
  20. ^ "Iran Total Imports, 1979 - 2018". CEIC Data. Retrieved October 5, 2019.
  21. ^ "Foreign import trade partners of Iran". The Observatory of Economic Complexity. Retrieved March 13, 2024.
  22. ^ "External Debt | Economic Indicators | CEIC". www.ceicdata.com.
  23. ^ a b "Iran Foreign reserves". IMF. January 2000. Retrieved May 20, 2020.
  24. ^ Iles, Toby (March 5, 2014). Pat Thaker (ed.). "Iran: risk assessment". Economist Intelligence Unit. Retrieved March 28, 2014.
  25. ^ "A survey of Iran: Stunted and distorted". The Economist (2003)
  26. ^ "Overview". World Bank. Retrieved December 24, 2023.
  27. ^ Energy and the Iranian Economy. US Government Printing Office. July 25, 2006. ISBN 978-1-4223-2094-5. Retrieved June 11, 2014.
  28. ^ Cite error: The named reference EIA was invoked but never defined (see the help page).
  29. ^ Balamir Coşkun, Bezen (Winter 2009). "Global Energy Geopolitics and Iran" (PDF). Uluslararası İlişkiler. 5 (20): 179–201. Archived from the original (PDF) on April 1, 2014.
  30. ^ Ramin Mostaghim, Alexandra Sandels and Patrick J. McDonnell: Iran businesses await a post-sanctions bonanza. Los Angeles Times, March 15, 2014. Retrieved March 28, 2014.
  31. ^ Jordan, Robert W. (July 16, 2015). "Iran Could Become an Economic Superpower". Time. Retrieved July 31, 2015.
  32. ^ Bonyad-e Mostazafan va Janbazan Oppressed and Disabled Veterans Foundation (MJF). Globalsecurity.org. Retrieved February 6, 2011.
  33. ^ "U.S. targets Iran's vulnerable oil". Los Angeles Times. 2007. Archived from the original on September 3, 2017. Retrieved July 17, 2007.
  34. ^ "Energy subsidies reach $84b". Iran Daily. April 27, 2008. Archived from the original on June 19, 2009.
  35. ^ Iran falls to 168 in Corruption Perception Index Archived November 22, 2009, at the Wayback Machine. Transparency International (2009). Retrieved November 19, 2009.
  36. ^ Country Report . Freedom House (2007). Retrieved October 29, 2009.
  37. ^ a b "World Factbook: Iran's entry". Central Intelligence Agency. 2008. Retrieved November 6, 2009.Public Domain This article incorporates text from this source, which is in the public domain.
  38. ^ a b "Islamic Republic of Iran. Overview". World Bank. May 1, 2020. Retrieved June 12, 2020.
  39. ^ "Iran threatens new war games in the oil lanes of the Gulf". The Telegraph. January 6, 2012. Archived from the original on January 12, 2022. Retrieved January 24, 2012.
  40. ^ a b "Iran Signs Deal With Russia To Import 20 Million Tons Of Basic Goods". Volant Media UK Limited. March 20, 2022.
  41. ^ Frances Harrison (January 8, 2007). "Huge cost of Iranian brain drain". BBC News.
  42. ^ Gheissari, Ali (2009). Contemporary Iran: Economy, Society, Politics. USA: Oxford University Press. pp. 3–4 (Paperback edition). ISBN 978-0-19-537849-8.
  43. ^ "Human Development Report 2014 – "Sustaining Human Progress: Reducing Vulnerabilities and Building Resilience"" (PDF). HDRO (Human Development Report Office) United Nations Development Programme. Retrieved August 8, 2014.
  44. ^ a b c d e f Cite error: The named reference Nordea-2020 was invoked but never defined (see the help page).
  45. ^ Cite error: The named reference theodora was invoked but never defined (see the help page).
  46. ^ Cite error: The named reference 6 charts bbc was invoked but never defined (see the help page).
  47. ^ Cite error: The named reference Heritage-2020 was invoked but never defined (see the help page).
  48. ^ Cite error: The named reference EoDB was invoked but never defined (see the help page).


Cite error: There are <ref group=note> tags on this page, but the references will not show without a {{reflist|group=note}} template (see the help page).