The economy of Iran is the seventeenth largest in the world by purchasing power parity (PPP) and twenty-sixth by market value.According to the international observers’ appraisal, despite the economic sanctions imposed by some Western governments, Iran’s GDP (PPP) will soar to 1.006 trillion dollars by the end of the year 2012, sending the Islamic Republic for the first time among the 17 countries that enjoy GDPs over 1 trillion dollars.Iran’s GDP (PPP) had amounted to 990 billion dollars in 2011, elevating the country’s standing as the 17th largest economy in the world. Only 11 countries enjoyed GDPs over 1 trillion dollars but the figure is expected to increase to 17 by the end of 2012.

 

Revising one of the Articles of Constitution (Article 44), improved the role of the private sector, the situation for non-governmental sector and doing business environment. Implementing the economic transformation plan, including targeting subsidies, amending customs, taxation and banking systems, goods and services distribution system as well as currency denomination reform and enhancing productivity are on the agenda.

 

The achievements of these plans are as per followings: The Targeted Subsidy Reform Plan, focusing on amending the energy carrier prices resulted in a 6 percent reduction in energy consumption. This policy reduced electricity consumption by 2 percent, while prior to implementation of the plan, there was an annual rate of growth of 8 percent. The revenues of targeting subsidies are redistributed. A cash payment to 73 million plus Iranian, led to a sharp fall of Gini Coefficient in Iran.

The capital market is developed, and privatizing state-owned firms and issuing Sukuk Bond are done through the stock exchange. These efforts led to 146 percent growth of stock exchange index and 100 percent growth in market value of Tehran Stock Exchange in December 2010, comparing to the end of 2007.Foreign direct investment (FDI) inflows in the country also experienced a 120-percent growth during 2009 and 2010.The growth of non-oil exports in 2009 and 2010 was 24 and 31 percent respectively.

Iran has increased its economic cooperation with other developing countries in ‘‘south-south” cooperation, and is expanding its trade ties with main partners to reach the common objectives of ECO and D-8 Organization. Iran is also an active member of Indian Ocean Ream Association for Regional cooperation (IOR-ARC) which deals with trade, investment, tourism and cultural ties amongst its 19 member states.

Source:MFA of Iran.


General Information
Official Name Islamic Republic of Iran
Capital Tehran
Main Cities Tehran, Mashhad, Isfahan, Karaj, Tabriz, Shiraz
Languages Persian
Government Islamic Republic
Independence Day Islamic Republic, 1 April 1979
Area 1,648,195 km2
Population 77 million
Currency Iranian Rial (IRR)
Climate Arid/Semiraid to Subtropical
Time Zone IRST (UTC +3:30), Summer/IRDT (UTC +4:30)
Main Airports Tehran (Imam Khomeini Int’l. Airport, Mehrabad Int’l. Airport), Isfahan (Isfahan Shahid Bahesti Int’l. Airport), Bandar Abbas (Bandar Abbas), Mashhad (Mashhad Int’l. Airport), Shiraz (Shiraz Int’l. Airport), Tabriz (Tabriz Int’l. Airport), Zahedan (Zahedan, Int’l. Airport)
Main Harbors Persian Gulf (Abadan, Khorramshahr, Bandar-e Khomeini, Bandar-e Abbas, and Bushehr) Caspian Sea (Bandar-e Anzeli, and Naushahr) Kharg Island (Persian Gulf) as the main offshore oil terminal
Source: National sources, 2014
Economic Information
  2009 2010 2011 2012 2013
Key Economic Indicator  
GDP Nominal, Current Price(US$, billion) 360.6 419.1 541 398 366
GDP Growth (%) 4.0 5.9 3.0 -5.6 -1.6
Current Account Balance(% of GDP) 2.6 6.5 11 6.6 8.1
Inflation, Consumer Prices(%) 10.8 12.4 21.5 30.5 35.2
Foreign Direct Investment(FDI) Inflows(US$, million) 2,9836 3,649 4,277 4,662 3,050
General Government Balance (% of GDP) 0.91 3.05 0.2 -0.34 -0.9
Economic Growth (% real change)
Gross National Savings -11.7 3.9 11.68 4.45 3.45
Gross Fixed Investment -5.65 -1.09 -3.5 -2.03 -1.42
Exports of Goods and Services 2.86 2.74 -0.32 -1.32 2.48
Import of goods & Services -9.06 -0.75 -5.28 -5.1 5.30
Structure of Economy (% of GDP)
Agriculture 9.95 9.74 9.45 9.1 8.79
Industry 38.73 41.77 41.35 41.50 41.35
Services 51.32 48.49 49.20 49.40 49.86
Economic Policy
Budget Balance(% of GDP) 0.75 0.91 3.02 0.29 -0.26
Public Debt(% of GDP) 10.22 11.47 13.48 9.19 11.78
Money Market interest rate(%) 12 12 12.2 14.15 14.15
M2 Growth (% change) 41.1 19.7 10.1 19.6 30.6
Exchange Reate LCU to USD 9,864 10,062 10,616 12,175 24,802
Balance of Payments (US$, million)
Current Account Balance 9,864 10,062 10,616 12,175 24,802
Trade Balance 8,612 31,962 62,431 7,642 914
Exports (Goods) 68,681 102,263 131,171 101,413 86,094
Imports (Goods) 60,069 70,300 68,740 93,771 85,180
Service Balance -9,973 -9,583 -10,040 -8,432 -6,293
Transfer Balance 362 101 185 423 552
Capital and Financial Account Balance -10,907 -13,728 -25,242 -17,465 -12,155
Foreign Direct Investment and Portfolio equity -247 260 354 -515 180
Medium and long-term debt -1,282 -1,468 -1,520 -2,382 -3,018
Trade Credit -3,292 2,188 2,903 -3,202 -3,362
Other Capital 1,134 -11,481 -21,639 -11,366 -5,955
Changes in Gross official reserves -8,229 5,345 -1,215 -21,436 -12,213
External Position(US$m)
Toral Foreign Debt 21,502 21,526 22,814 17,340 7,682
Short-term debt 6,599 8,787 11,613 8,475 943
International Investment position 72,381 71,981 73,660 91,884 98,126
Total Assets 79,587 78,007 78,910 95,478 104,428
Total liabilities 7,206 6,027 5,250 3,593 6,302
Population and Income
Population (Million) 73.2 74.3 75.1 76.1 77
GDP per capita at PPP(US$) 12,012 12,677 13,126 12,444 12,264
Unemployment Rate (% of total labor force) 11.9 13.5 12.3 12.2 13
Source: IMF, International Financial Statistics 2014
Iran Trade with World
US$ Mn. 2009 2010 2011 2012 2013
Export (fob) 68,681 102,263 131,171 101,413 86,094
Import (cif) 60,069 70,300 68,740 93,771 85,180
Trade Volume 128,750 172,562 199,911 195,184 171,274
Trade Balance 8,612 31,962 62,431 7,642 914
World Trade (US$ Bn) 24,949 28,143 35,397 36,355 36,774
Share 0.51% 0.61% 0.56% 0.53% 0.45%
Source: IMF, International Financial Statistics 2014
Iran Trade with D-8 Countries
US$ Mn. 2009 2010 2011 2012 2013
Export (fob) 4,120.20 9,091 14,365 14,279 11,204
Import (cif) 3,789.18 5,459 6,618 14,814 7,023
Trade Volume 7,909.38 14,550 20,983 29,093 18,227
Trade Balance 331.02 3,632 7,747 -535 4,181
D-8 Intra Trade (US$ Mn) 66,947.62 101,139 129,493 148,191 133,064
Share 11.8% 14.4% 16.2% 19.6% 13.7%
Source: IMF, International Financial Statistics 2014
Iran Trade By 10 Main Commodities
Export by 10 Principal Commodities, (million US$)
No. Commodity 2009 2010 2011 2012 2013
1. Mineral fuels, oils, distillation products, etc 56,216 62,640 106,714 68,856 49,399
2. Plastics and articles thereof 1,200 2,827 3,186 2,616 2,984
3. Organic Chemicals 2,325 2,972 3,556 3,167 2,920
4. Ores, slag and ash 1,109 1,239 1,022 2,429 2,697
5. Edible fruit, nuts, peel of citrus fruit, melons 681 2,310 2,008 1,082 838
6. Fertilizers 246 280 1,000 1,106 827
7. Salt, sulphur, earth, stone, plaster, lime and cement 250 808 852 552 523
8. Iron and Steel 311 638 844 399 401
9. Inorganic chemicals, precious metal compound, isotopes 534 576 786 536 347
10. Copper and articles thereof 465.1 579 851 450 252
Import by 10 Principal commodities, (million US$)
No. Commodity 2009 2010 2011 2012 2013
1. Machinery, nuclear reactors, boilers, etc 9,787 11,589 11,644 8,107 6,192
2. Cereals 2,154 2,284 2,547 4,356 4,940
3. Electrical and Electronic Equipment 3,762 3,018 3,820 3,623 3,762
4. Optical, photo, techncial, medical etc. apparatus 1,428 1,489 1,463 1,529 1,396
5. Iron and Steel 4,743 7,706 8,119 3,660 2,284
6. Animal, vegetable, fat and oils, cleavage products etc. 1,054 1,137 1,717 1,835 1,880
7. Plastics and articles thereof 1,585 2,165 2,688 2,106 1,874
8. Pearls, precious stones, metals, coins, etc. 234 490 28 6,563 1,704
9. Articles of iron or steel 2,422.5 1,986 1,408.9 2,424.1 1,519
10. Pharmaceuticals products 1,017.2 1,058.1 1,496.8 1,168.6 1,311
Source: WTO, International Trade Centre 2014
Export and Import by Main Destination Country
Export by Main Destination Country (% of total)
2009 2010 2011 2012 2013
China 18.5 19.2 22.6 30 40
Japan 15.3 16.7 13.1 9.6 11
South Korea 7.1 7.5 8.3 10.3 8.8
Turkey 6.9 7.5 10.6 14.4 16.4
Italy 4.9 5.4 4.5 3.5 0.3
Other 47.3 43.7 40.9 32.2 23.9
Source: WTO, International Trade Centre 2014
Import by Main Destination Country (% of total)
2009 2010 2011 2012 2013
China 13.3 13.8 15.6 21.8 28.8
Germany 9.6 9.3 8.5 6.2 5.1
Turkey 4.3 4.2 10.5 18.8 8.6
South Korea 6.4 6.5 8.9 11.8 9.6
Russia 5.6 5.5 5.3 3.6 2.4
Other 56.2 56.3 51.2 37.8 45.5
Source: WTO, International Trade Centre 2014
Foreign Direct Investment (Overview, selected years)
US$(Mn.) FDI Flows FDI Stocks
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
Inward 2,983 3,649 4,277 4,662 3,050 25,304 28,953 33,230 37,891 40,941
Outward 355 346 360 430 380 2,208 2,554 2,915 3,345 3,725
Source: UNCTAD, 2014
Agriculture: Food Commodities
US$ Mn 2009 2010 2011 2012 2013
Export - 1,082 1,061 104 65
Import - 5,978 6,967 8,033 8,243
Trade Volume - 7,060 8,028 8,137 8,308
Trade Balance - -4,896 -5,906 -7,929 -8,178
Iran's Total Trade - 128,750 172,562 199,911 195,184
Share to Iran's Total Trade - 5.5% 4.65% 4.07% 4.25%
Source: WTO,FAO 2014
Energy
Oil/Petroleum(Thousand Barrels per Day)
2009 2010 2011 2012 2013
Total Oil Production 4,249 4,356 4,358 3,751 3,558
Consumption 2,011 1,873 1,909 1,927 2,002
Refinery 1,860 1,860 1,860 1,892 1.970
Proved Reserved(Billion barrels) 137 151.2 154.6 157 157
Natural Gas
Natural Gas(Billion Cubic Feet/Day) 2009 2010 2011 2012 2013
Total Production 14.0 14.7 15.5 16.0 16.1
Consumption 13.9 14.8 15.7 15.6 15.7
Proved Reserved(Trillion cubic meters,TCM) 29.6 33.1 33.6 33.6 33.8
Others Energy
Energy Year
2009 2010 2011 2012 2013
Biofuels production (Thousand barrels daily) 1.1 1.7 1.8 2 2.1
Electricity Generation (Terawatt-hours) 215.1 226.1 235.5 247.7 263.4
Renewable Energy (Installed Capacity) Geothermal (mega-watts) - - - - -
Solar (maga-watts) 55 60 67 70 75
Wind (mega-watts) 92 90 91 91 131
Source: BP statistics, 2014