Page last updated on February 5, 2013
Economy - overview:
Iran's economy is marked by statist policies and an inefficient state sector, which create major distortions throughout the system, and reliance on oil, which provides the majority of government revenues. Price controls, subsidies, and other rigidities weigh down the economy, undermining the potential for private-sector-led growth. Private sector activity is typically limited to small-scale workshops, farming, and services. Significant informal market activity flourishes and corruption is widespread. Tehran since the early 1990s has recognized the need to reduce these inefficiencies, and in December 2010 the legislature passed President Mahmud AHMADI-NEJAD's Targeted Subsidies Law (TSL) to reduce state subsidies on food and energy. This was the most extensive economic reform since the government implemented gasoline rationing in 2007. Over a five-year period the bill will phase out subsidies that previously cost Tehran $60-$100 billion annually and mostly benefited Iran's upper and middle classes. Cash payouts of $45 per person to more than 90% of Iranian households mitigated initial widespread resistance to the TSL program, though popular acceptance remains vulnerable to rising inflation. A rise in world oil prices in 2011 increased Iran's oil export revenue by roughly $28 billion over 2010, easing some of the financial impact of international sanctions. However, expansionary fiscal and monetary policies, government mismanagement, the sanctions, and a depreciating currency are fueling inflation, and GDP growth remains stagnant. Iran also continues to suffer from double-digit unemployment and underemployment. Underemployment among Iran's educated youth has convinced many to seek jobs overseas, resulting in a significant "brain drain."
GDP (purchasing power parity):
$997.4 billion (2012 est.)
country comparison to the world: 18
$1.007 trillion (2011 est.)
$986.8 billion (2010 est.)
note:
data in US dollars
[see also:
GDP country ranks ]
GDP (official exchange rate):
$483.8 billion (2012 est.)
[see also: GDP (official exchange rate) country ranks ]
GDP - real growth rate:
-0.9% (2012 est.)
country comparison to the world: 197
2% (2011 est.)
5.9% (2010 est.)
[see also:
GDP - real growth rate country ranks ]
GDP - per capita:
$13,100 (2012 est.)
country comparison to the world: 97
$13,400 (2011 est.)
$13,300 (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP - per capita country ranks ]
GDP - composition by sector:
agriculture: 11%
[see also: GDP - composition by sector - agriculture country ranks ]
industry:
38.4%
services:
50.6% (2012 est.)
Labor force:
27.05 million
country comparison to the world: 24
note:
shortage of skilled labor (2012 est.)
[see also: Labor force country ranks ]
Labor force - by occupation:
agriculture: 25%
[see also: Labor force - by occupation - agriculture country ranks ]
industry:
31%
services:
45% (June 2007)
Unemployment rate:
15.5% (2012 est.)
country comparison to the world: 149
15.3% (2011 est.)
note:
data are according to the Iranian Government
[see also:
Unemployment rate country ranks ]
Population below poverty line:
18.7% (2007 est.)
[see also: Population below poverty line country ranks ]
Household income or consumption by percentage share:
lowest 10%: 2.6%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%:
29.6% (2005)
Distribution of family income - Gini index:
44.5 (2006)
country comparison to the world: 44
[see also: Distribution of family income - Gini index country ranks ]
Investment (gross fixed):
31.2% of GDP (2012 est.)
country comparison to the world: 17
[see also: Investment (gross fixed) country ranks ]
Budget:
revenues: $131.2 billion
[see also: Budget revenues country ranks ]
expenditures:
$92.63 billion (2011 est.)
Taxes and other revenues:
13.8% of GDP (2012 est.)
country comparison to the world: 199
[see also: Taxes and other revenues country ranks ]
Budget surplus (+) or deficit (-):
-5% of GDP (2012 est.)
country comparison to the world: 156
[see also: Budget surplus (+) or deficit (-) country ranks ]
Public debt:
18.8% of GDP (2012 est.)
country comparison to the world: 127
18.2% of GDP (2011 est.)
note:
includes publicly guaranteed debt
[see also:
Public debt country ranks ]
Inflation rate (consumer prices):
23.6% (2012 est.)
country comparison to the world: 219
20.6% (2011 est.)
note:
official Iranian estimate
[see also:
Inflation rate (consumer prices) country ranks ]
Central bank discount rate:
NA%
[see also: Central bank discount rate country ranks ]
Commercial bank prime lending rate:
16% (31 December 2012 est.)
country comparison to the world: 66
12.5% (31 December 2011 est.)
[see also:
Commercial bank prime lending rate country ranks ]
Stock of narrow money:
$58.77 billion (31 December 2012 est.)
country comparison to the world: 46
$54.88 billion (31 December 2011 est.)
[see also:
Stock of narrow money country ranks ]
Stock of broad money:
$199.9 billion (31 December 2012 est.)
country comparison to the world: 41
$183.5 billion (31 December 2011 est.)
[see also:
Stock of broad money country ranks ]
Stock of domestic credit:
$138.5 billion (31 December 2012 est.)
country comparison to the world: 49
$138.3 billion (31 December 2011 est.)
[see also:
Stock of domestic credit country ranks ]
Market value of publicly traded shares:
$107.2 billion (31 December 2011)
country comparison to the world: 44
$86.62 billion (31 December 2010)
$63.3 billion (31 December 2009)
[see also:
Market value of publicly traded shares country ranks ]
Agriculture - products:
wheat, rice, other grains, sugar beets, sugarcane, fruits, nuts, cotton; dairy products, wool; caviar
Industries:
petroleum, petrochemicals, fertilizers, caustic soda, textiles, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), ferrous and non-ferrous metal fabrication, armaments
Industrial production growth rate:
-2.7% (2011 est.) (2011 est.)
country comparison to the world: 157
[see also: Industrial production growth rate country ranks ]
Current account balance:
-$9.078 billion (2012 est.)
country comparison to the world: 175
