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 76 million (2013 est.)
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, 2013
Economic Indicators
  2005 2006 2007 2008 2009 2010 2011 2012
GDP  
Nominal GDP (US$bn) 189 223 286 337 361 417 485 532
Real GDP Growth (%) 4.7 5.8 7.8 6.5 0.5 2.9 -1.9 -1.3
Expenditure on GDP (% real change)
Private Consumption 6.6 6.2 9.1 8.5 3.1 3.3 4.0 5.0
Government Consumption 11.6 7.4 -4.3 5.0 3.0 2.5 3.1 3.5
Gross fixed Investment 5.1 3.3 6.0 5.8 2.8 3.0 4.1 4.0
Export of goods & Services 4.0 4.0 8.3 9.0 6.2 6.0 2.0 2.5
Import of goods & Services 4.0 4.0 8.3 9.0 6.2 6.0 6.1 6.0
Origin of GDP (%real change)
Agriculture 9.3 4.7 6.2 3.0 2.8 4.0 3.5 3.8
Industry 4.7 6.9 7.9 4.5 4.0 4.3 6 5.8
Services 5.6 6.5 6.8 5.8 -2.5 1.6 2.5 3.0
GDP per capita(US$ at PPP) 8,967 9,689 10,619 11,418 11,485 11,840 13,174 12,986
Fiscal Indicator (% of GDP)
Public-sector revenue 55.9 39.4 35.5 35.9 26.9 26.8 25.8 16.5
Public-sector expenditure 42.1 27.5 21.4 22.4 23.6 21.0 21.6 19
Public-sector balance -3.6 -7.2 -3.6 -3.5 -5.2 -3.8 -2.3 -4.5
Net Public Debt 27.0 24.6 21.0 17.3 17.8 17.0 17.5 17.3
Prices and financial indicators
Exchange Rates IR:US$ (av.) 8,964 9,171 9,281 9,429 9,864 10,062 10,616 12,175
Consumer Prices (av. %) 13.4 11.6 17.1 25.4 13.5 11.8 21.3 21.8
Stock of money M1(%change) 22.8 25.9 30.5 16.9 6.8 8.0 12.1 15.3
Stock of money M2(%change) 22.8 29.1 30.6 19.1 15.0 17.0 18.2 18.5
Lending interest rate(av.;%) 16.2 14.0 12.5 12.0 12.0 12.5 12.3 12.5
Current Account(US$m)
Trade Balance 21,281 26,035 40,819 32,039 13,164 31,962 62,431 7,642
Goods: exports fob 64,366 76,055 97,401 100,572 70,323 102,263 131,171 101,413
Goods: imports cif -43,085 -50,020 -56,582 -68,533 -57,159 -70,300 -68,740 -93,771
Services Balance -7,567 -9,794 -11,230 -13,907 -11,613 -11,701 -10,171 -12,153
Income Balance 2,007 3,529 4,638 2,313 314 211 1,718 1,537
Current-account Balance 16,637 20,402 34,081 23,987 2,713 12,399 59,382 27,156
External Debt (US$m)
Debt Stock 21,867 19,375 21,069 13,938 12,712 12,062 13,785 14,081
Debt service paid 2,814 2,748 2,932 2,794 2,030 1,967 2,167 2,511
International reserves(US$m)
Total international reserves 45,459 58,459 82,059 96,559 81,309 75,060 75,891 75,511
Source: IMF, International Financial Statistics 2013
Iran Trade with the World
US$ Million 2005 2006 2007 2008 2009 2010 2011 2012
Export (fob) 55,232 75,801 89,025 116,940 68,681 102,263 131,171 101,413
Import (cif) 38,904 40,686 45,168 70,115 60,069 70,300 68,740 93,771
Trade Volume 94,136 116,487 134,193 187,055 128,750 172,562 199,911 195,184
Trade Balance 16,328 35,115 43,857 46,825 8,612 31,962 62,431 7,642
World Trade (US$ Bn) 21,058 24,294 27,845 32,215 24,948 28,143 35,397 36,355
Share 0.44% 0.47% 0.48% 0.58% 0.51% 0.61% 0.56% 0.54%
Source: IMF, International Financial Statistics 2013
Iran Trade with D-8 Countries
US$ million 2005 2006 2007 2008 2009 2010 2011 2012
Export (fob) 3,917.36 6,210.09 7,044.74 9,136.44 4,120.20 9,091 14,365 14,279
Import (cif) 1,562.82 1,522.14 1,993.78 4,091.15 3,789.19 5,459 6,618 14,814
Trade Volume 5,480.18 7,732.23 9,038.52 13,227.59 7,090.39 14,550 20,983 29,093
Trade Balance 2,354.54 4,687.95 5,050.96 5,045.29 331.01 3,632 7,747 -535
D-8 Intra Trade (US$ Mn) 41,537.19 49,806.52 66,828.03 78,382.2 66,947.63 101,139 129,493 148,191
Share 13.19% 15.52% 13.52% 16.87% 10.59% 14.38% 16.2% 19.6%
Source: IMF, International Financial Statistics 2013
Iran Trade By 10 Main Commodities
Export by 10 Principal Commodities, (million US$)
No. Commodity 2006 2007 2008 2009 2010 2011 2012
1. Mineral fuels, oils, distillation products, etc 52,678.8 69,449.3 93,873.8 56,216.4 64,271.4 106,714 68,792
2. Organic chemicals 660.6 1,804.6 3,619.7 2,325.1 2,904.6 3,556.1 3,163
3. Plastics and articles thereof 797.6 537.8 604.7 1,200.5 2,296.7 3,186.2 2,610.3
4. Ores, slag and ash 301.9 1,045.4 1,596.8 1,109.6 2,141.4 1,021.7 2,439.7
5. Edible fruit, nuts, peel of citrus fruit, melons 1,493.6 1,042.4 1,009.5 680.7 747.7 2,008.6 1,047.7
6. Copper and articles thereof 597.6 862.5 720.8 465.1 677.7 851.2 421.5
7. Aluminum and articles thereof 248.6 217.6 318.2 287.9 370.1 500.2 320.5
8. Iron and steel 1,115.1 959.5 796.5 311.2 301.3 843.9 298.7
9. Salt, sulphur, earth, stone, plaster, lime and cement 165.3 389.9 801.4 249.6 288.8 852.1 539.5
10. Carpets and other textile floor coverings 597.6 374.1 267 211.1 241.5 857.2 180.8
Import by 10 Principal commodities, (million US$)
No. Commodity 2006 2007 2008 2009 2010 2011 2012
1. Machinery, nuclear reactors, boilers, etc 1,547.6 8,949.7 10,323.1 9,787.5 10,693.1 11,643.8 8,110.4
2. Iron and steel 797.8 6,907.3 6,199.2 4,743.3 4,952.3 8,119.5 3,653.4
3. Vehicles other than railway, tramway 622.9 5,281.3 6,186.6 3,382.9 4,747.5 2,892.9 2,394.3
4. Electrical, electronic equipment 894.8 4,164.6 4,782.4 3,762.2 3,596.1 3,820.1 3,624.6
5. Plastics and articles thereof 212.1 1,810.4 1,939.6 1,585.1 2,045.8 2,688.8 2,099.6
6. Articles of iron or steel 603.5 1,937.5 2,470.4 2,422.5 1,986 1,408.9 2,424.1
7. Optical, photo, technical, medical, etc apparatus 252.1 1,090.3 1,373.6 1,428.3 1,489.3 1,463.1 1,529.6
8. Pharmaceutical products 204.5 794.1 926.8 1017.2 1,058.1 1,496.8 1,168.6
9. Meat and edible meat offal 10 237.8 369.4 365.1 952.2 988.2 646.2
10. Paper & paperboard, articles of pulp, paper and board 84.9 859.1 851.9 738.5 807.4 1,321.1 924.2
Source: WTO, International Trade Centre 2013
Export and Import by Main Destination Country
Export by Main Destination Country (% of total)
2005 2006 2007 2008 2009 2010 2011 2012
China 10.2 22.5 14.5 20.6 18.5 19.2 22.6 30
Japan 28.4 28.4 13.3 18.2 15.3 16.7 13.1 9.6
South Korea 0.2 0.3 6.2 5.2 7.1 7.5 8.3 10.3
Turkey 0.6 0.5 7.7 4.3 6.9 7.5 10.6 14.4
Italy 10.3 10.7 6.6 5.2 4.9 5.4 4.5 3.5
Others 39.4 42.1 51.7 46.5 47.3 43.7 40.9 32.2
Source: WTO, International Trade Centre 2013
Import by Main Destination Country (% of total)
2005 2006 2007 2008 2009 2010 2011 2012
China 10.2 12.4 14.3 14.0 13.3 13.8 15.6 21.8
Germany 9.0 9.2 9.8 9.8 9.6 9.3 8.5 6.2
Turkey -- -- 4.0 4.2 4.3 4.2 10.5 18.8
South Korea 5.2 5.5 5.9 6.0 6.4 6.5 8.9 11.8
Russia 4.3 5.0 5.4 5.4 5.6 5.5 5.3 3.6
Others 63.1 59.5 56.2 56.3 56.2 56.3 51.2 37.8
Source: WTO, International Trade Centre 2013
Foreign Direct Investment (Overview, selected years)
US$(Mn.) FDI Flows FDI Stocks
2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 2011 2012
Inward 3,136 1,626 1,658 1,492 3,016 3,647 4,150 4,870 16,036 17,682 19,688 21,597 24,645 28,293 32,443 37,313
Outward 452 386 302 380 356 346 360 430 786 1,171.5 1,473.2 1,853 2,208.7 2,554 2,915 3,345
Source: UNCTAD, 2013
Agriculture: Food Commodities
US$ Mn 2008 2009 2010 2011 2012
Export 235 73,2 49,25 53.2 54.1
Import 6,163.2 4,553.3 3,677 3,246 3,112
Trade Volume 6,398.2 4,626.5 3,726.25 3,299.2 3,166.1
Trade Balance -5,928.2 -4,480.1 -3,627.75 -3,192.8 -3,057.9
Iran's Total Trade 135,264.4 128,750 172,562 199,911 195,184
Share to Iran's Total Trade 4.73% 3.59% 2.16% 1.65% 1.62%
Source: WTO,FAO, 2013
Energy
Oil
Petroleum(Thousand Barrels per Day) 2006 2007 2008 2009 2010 2011 2012
Total Oil Production 4,286 4,322 4,327 4,199 4,245 4,250 4,355
Consumption 1,728 1,718 1,822 1,787 1,799 1,805 1,815
Refinery 1,727 1,772 1,805 1,860 1,860 1,860 1,865
Proved Reserved(Billion barrels) 138.4 138.2 137.6 137.0 137.0 137.0 137.0
Natural Gas
Natural Gas(Billion Cubic Feet/Day) 2006 2007 2008 2009 2010 2011 2012
Total Production 10.5 10.8 11.2 12.7 13.4 13.8 14.1
Consumption 10.5 10.9 11.5 12.7 13.2 13.2 13.4
Proved Reserved(Trillion cubic meters,TCM) 26.9 28.1 29.6 29.6 29.6 29.6 29.6
Others Energy
Energy Year
2008 2009 2010 2011 2012
Biofuels production (Thousand barrels daily) - - - - -
Electricity Generation (Terawatt-hours) 206.3 215.1 226.1 231 245
Renewable Energy (Installed Capacity) Geothermal (mega-watts) - - - - -
Solar (maga-watts) - - - - -
Wind (mega-watts) - - - - -
Source: BP statistics, 2013