Economy - overview:

Iran's economy is marked by an inefficient state sector, reliance on the oil sector (which provides 85% of government revenues), and statist policies that create major distortions throughout. Most economic activity is controlled by the state. Private sector activity is typically small-scale workshops, farming, and services. President Mahmud AHMADI-NEJAD failed to make any notable progress in fulfilling the goals of the nation's latest five-year plan. A combination of price controls and subsidies, particularly on food and energy, continue to weigh down the economy, and administrative controls, widespread corruption, and other rigidities undermine the potential for private-sector-led growth. As a result of these inefficiencies, significant informal market activity flourishes and shortages are common. High oil prices in recent years have enabled Iran to amass nearly $70 billion in foreign exchange reserves. Yet this increased revenue has not eased economic hardships, which include double-digit unemployment and inflation. The economy has seen only moderate growth. Iran's educated population, economic inefficiency and insufficient investment - both foreign and domestic - have prompted an increasing number of Iranians to seek employment overseas, resulting in significant "brain drain."

GDP (purchasing power parity):

$753 billion (2007 est.)

GDP (official exchange rate):

$294.1 billion (2007 est.)

GDP - real growth rate:

5.8% (2007 est.)

GDP - per capita (PPP):

$10,600 (2007 est.)

GDP - composition by sector:

agriculture: 10.7%
industry: 42.9%
services: 46.4% (2007 est.)

Labor force:

28.7 million
note: shortage of skilled labor (2006 est.)

Labor force - by occupation:

agriculture: 25%
industry: 31%
services: 45% (June 2007)

Unemployment rate:

12% according to the Iranian government (2007 est.)

Population below poverty line:

18% (2007 est.)

Household income or consumption by percentage share:

lowest 10%: 2%
highest 10%: 33.7% (1998)

Distribution of family income - Gini index:

43 (1998)

Inflation rate (consumer prices):

17.5% (2007 est.)

Investment (gross fixed):

27.6% of GDP (2007 est.)

Budget:

revenues: $64 billion
expenditures: $64 billion (2007 est.)

Public debt:

25.2% of GDP (2007 est.)

Agriculture - products:

wheat, rice, other grains, sugar beets, sugar cane, 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:

4.8% excluding oil (2007 est.)

Electricity - production:

170.4 billion kWh (2005)

Electricity - consumption:

136.2 billion kWh (2005)

Electricity - exports:

2.761 billion kWh (2005)

Electricity - imports:

2.074 billion kWh (2005)

Oil - production:

4.15 million bbl/day (2006 est.)

Oil - consumption:

1.63 million bbl/day (2006 est.)

Oil - exports:

2.52 million bbl/day (2006 est.)

Oil - imports:

153,600 bbl/day (2004)

Oil - proved reserves:

138.4 billion bbl based on Iranian claims (2007 est.)

Natural gas - production:

101 billion cu m (2005 est.)

Natural gas - consumption:

98.19 billion cu m (2005 est.)

Natural gas - exports:

4.33 billion cu m (2005 est.)

Natural gas - imports:

5.8 billion cu m (2005)

Natural gas - proved reserves:

26.37 trillion cu m (1 January 2006 est.)

Current account balance:

$30.47 billion (2007 est.)

Exports:

$83.99 billion f.o.b. (2007 est.)

Exports - commodities:

petroleum 80%, chemical and petrochemical products, fruits and nuts, carpets

Exports - partners:

Japan 14.2%, China 14%, Turkey 7.4%, Italy 6.4%, South Korea 6.3%, South Africa 4% (2006)

Imports:

$53.73 billion f.o.b. (2007 est.)

Imports - commodities:

industrial raw materials and intermediate goods, capital goods, foodstuffs and other consumer goods, technical services

Imports - partners:

China 14.2%, Germany 9.7%, UAE 9.2%, South Korea 5.8%, Russia 5.3%, Italy 5%, France 4% (2006)

Economic aid - recipient:

$104 million (2005 est.)

Reserves of foreign exchange and gold:

$64.46 billion (2007 est.)

Debt - external:

$20.65 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:

$6.026 billion (2007 est.)

Stock of direct foreign investment - abroad:

$903 million (2007 est.)

Market value of publicly traded shares:

$45.2 billion (December 2007)

Currency (code):

Iranian rial (IRR)

Exchange rates:

rials per US dollar - 9,407.5 (2007), 9,227.1 (2006), 8,964 (2005), 8,614 (2004), 8,193.9 (2003)
note: Iran has been using a managed floating exchange rate regime since unifying multiple exchange rates in March 2002

Fiscal year:

21 March - 20 March