IRAN, Economy - overview: Irans economy is marked by an inefficient state sector, reliance on the oil sector, which provides the majority of government revenues, and statist policies, which create major distortions throughout the system. Private sector activity is typically limited to small-scale workshops, farming, and services. Price controls, subsidies, and other rigidities weigh down the economy, undermining the potential for private-sector-led growth. 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-NEJADs Targeted Subsidies Law (TSL) to reduce state subsidies on food and energy. The bill over a five-year period will phase out subsidies that previously cost Tehran $60-$100 billion annually and benefited Irans upper and middle classes most. Direct cash payouts of $45 per person to more than 90% of Iranian households have mitigated initial widespread resistance to the TSL program, though this acceptance remains vulnerable to rising inflation. This is the most extensive economic reform since the government implemented gasoline rationing in 2007. The continued rise in world oil prices in the last calendar year increased Irans 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 Irans educated youth has convinced many to seek jobs overseas, resulting in a significant brain drain. GDP (purchasing power parity): $928.9 billion (2011 est.) country comparison to the world: 18 $906.2 billion (2010 est.) $877.6 billion (2009 est.) note: data in US dollars GDP (official exchange rate): $480.3 billion (2011 est.) GDP - real growth rate: 2.5% (2011 est.) country comparison to the world: 138 3.2% (2010 est.) 3.5% (2009 est.) GDP - per capita (PPP): $12,200 (2011 est.) country comparison to the world: 99 $12,100 (2010 est.) $11,900 (2009 est.) note: data are in 2011 US dollars GDP - composition by sector: agriculture: 11.2% industry: 40.6% services: 48.2% (2011 est.) Labor force: 26.37 million country comparison to the world: 24 note: shortage of skilled labor (2011 est.) Labor force - by occupation: agriculture: 25% industry: 31% services: 45% (June 2007) Unemployment rate: 15.3% (2011 est.) country comparison to the world: 151 14.6% (2010 est.) note: data are according to the Iranian Government Population below poverty line: 18.7% (2007 est.) Household income or consumption by percentage share: lowest 10%: 2.6% highest 10%: 29.6% (2005) Distribution of family income - Gini index: 44.5 (2006) country comparison to the world: 46 Investment (gross fixed): 27.6% of GDP (2011 est.) country comparison to the world: 48 Budget: revenues: $130.6 billion expenditures: $92.22 billion (2011 est.) Taxes and other revenues: 27.2% of GDP (2011 est.) country comparison to the world: 106 Budget surplus (+) or deficit (-): 8% of GDP (2011 est.) country comparison to the world: 10 Public debt: 11.6% of GDP (2010 est.) country comparison to the world: 121 8.9% of GDP (2009) note: includes publicly guaranteed debt Inflation rate (consumer prices): 22.5% (2011 est.) country comparison to the world: 219 12.4% (2010 est.) note: official Iranian estimate Central bank discount rate: NA% Commercial bank prime lending rate: 12.5% (31 December 2011 est.) country comparison to the world: 70 12.5% (31 December 2010 est.) Stock of narrow money: $57.16 billion (31 December 2011 est.) country comparison to the world: 44 $50.15 billion (31 December 2010 est.) Stock of broad money: $367.8 billion (31 December 2011 est.) country comparison to the world: 26 $310.4 billion (31 December 2010 est.) Stock of domestic credit: $144 billion (31 December 2011 est.) country comparison to the world: 44 $135 billion (31 December 2010 est.) Market value of publicly traded shares: $107.2 billion (31 December 2011) country comparison to the world: 46 $86.62 billion (31 December 2010) $63.3 billion (31 December 2009) Agriculture - products: wheat, rice, other grains, sugar beets, sugarcane, fruits, nuts, cotton; dairy products, wool; caviar
Posted on: Tue, 07 Oct 2014 23:52:57 +0000
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