Iran Economy - 2005

Economy - overview:
Iran's economy is marked by a bloated, inefficient state sector, over reliance on the oil sector, 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 KHATAMI has continued to follow the market reform plans of former President RAFSANJANI, with limited progress. Relatively high oil prices in recent years have enabled Iran to amass some $30 billion in foreign exchange reserves, but have not eased economic hardships such as high unemployment and inflation. The proportion of the economy devoted to the development of weapons of mass destruction remains a contentious issue with leading Western nations.

GDP:
purchasing power parity - $516.7 billion (2004 est.)

GDP - real growth rate:
6.3% (2004 est.)

GDP - per capita:
purchasing power parity - $7,700 (2004 est.)

GDP - composition by sector:
agriculture: 11.2%
industry: 40.9%
services: 48.7% (2004 est.)

Labor force:
23 million
note: shortage of skilled labor (2004 est.)

Labor force - by occupation:
agriculture 30%, industry 25%, services 45% (2001 est.)

Unemployment rate:
11.2% (2004 est.)

Population below poverty line:
40% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
15.5% (2004 est.)

Investment (gross fixed):
31.3% of GDP (2004 est.)

Budget:
revenues: $43.34 billion
expenditures: $47.7 billion, including capital expenditures of $7.6 billion (2004 est.)

Public debt:
27% of GDP (2004 est.)

Agriculture - products:
wheat, rice, other grains, sugar beets, fruits, nuts, cotton; dairy products, wool; caviar

Industries:
petroleum, petrochemicals, textiles, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), metal fabrication, armaments

Industrial production growth rate:
3.5% excluding oil (2004 est.)

Electricity - production:
129 billion kWh (2002)

Electricity - consumption:
119.9 billion kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
3.962 million bbl/day (2004 est.)

Oil - consumption:
1.4 million bbl/day (2002 est.)

Oil - exports:
2.5 million bbl/day (2004 est.)

Oil - imports:
NA

Oil - proved reserves:
130.8 billion bbl (2004 est.)

Natural gas - production:
79 billion cu m (2003 est.)

Natural gas - consumption:
72.4 billion cu m (2003 est.)

Natural gas - exports:
3.4 billion cu m (2003 est.)

Natural gas - imports:
4.92 billion cu m (2003 est.)

Natural gas - proved reserves:
26.7 trillion cu m (2004)

Current account balance:
$2.1 billion (2004 est.)

Exports:
$38.79 billion f.o.b. (2004 est.)

Exports - commodities:
petroleum 80%, chemical and petrochemical products, fruits and nuts, carpets

Exports - partners:
Japan 20%, China 9.9%, Italy 6.3%, South Africa 6.3%, Taiwan 4.8%, Turkey 4.7%, South Korea 4.7%, France 4.3%, Netherlands 4.3% (2004)

Imports:
$31.3 billion f.o.b. (2004 est.)

Imports - commodities:
industrial raw materials and intermediate goods, capital goods, foodstuffs and other consumer goods, technical services, military supplies

Imports - partners:
Germany 13%, France 8.9%, Italy 8%, China 7.7%, UAE 6.4%, South Korea 6.3%, Russia 4.9% (2004)

Reserves of foreign exchange and gold:
$29.87 billion (2004 est.)

Debt - external:
$13.4 billion (2004 est.)

Economic aid - recipient:
$408 million (2002 est.)

Currency (code):
Iranian rial (IRR)

Exchange rates:
rials per US dollar - 8,614 (2004), 8,193.9 (2003), 6,907 (2002), 1,753.6 (2001), 1,764.4 (2000)
note: Iran has been using a managed floating exchange rate regime since unifying multiple exchange rates in March 2002