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.