Iran Economy 2007

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 Mahmud AHMADI-NEJAD 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 nearly $60 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):
$599.2 billion (2006 est.)

GDP (official exchange rate):
$193.5 billion (2006 est.)

GDP - real growth rate:
4.3% (2006 est.)

GDP - per capita (PPP):
$8,700 (2006 est.)

GDP - composition by sector:
agriculture: 11%
industry: 44.9%
services: 44.1% (2006 est.)

Labor force:
24.29 million
note: shortage of skilled labor (2006 est.)

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

Unemployment rate:
15% according to the Iranian government (2007 est.)

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

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA% (1998)

Distribution of family income - Gini index:
43 (1998)

Inflation rate (consumer prices):
12% (2006 est.)

Investment (gross fixed):
29.4% of GDP (2006 est.)

Budget:
revenues: $110.8 billion
expenditures: $93.61 billion (2006 est.)

Public debt:
23.6% of GDP (2006 est.)

Agriculture - products:
wheat, rice, other grains, sugar beets, 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:
3.2% excluding oil (2006 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:
3.979 million bbl/day (2005 est.)

Oil - consumption:
1.51 million bbl/day (2004 est.)

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

Oil - imports:
NA bbl/day

Oil - proved reserves:
138.4 billion bbl based on Iranian claims (1 January 2006)

Natural gas - production:
96.77 billion cu m (2005 est.)

Natural gas - consumption:
98.19 billion cu m (2005 est.)

Natural gas - exports:
4.143 billion cu m (2005 est.)

Natural gas - imports:
5.563 billion cu m (2005)

Natural gas - proved reserves:
26.37 trillion cu m (1 January 2006 est.)

Current account balance:
$16.51 billion (2006 est.)

Exports:
$66.67 billion f.o.b. (2006 est.)

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

Exports - partners:
Japan 14%, China 12.8%, Turkey 7.2%, Italy 6.3%, South Korea 6%, Netherlands 4.6% (2006)

Imports:
$45.67 billion f.o.b. (2006 est.)

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

Imports - partners:
Germany 12%, China 10.5%, UAE 9.4%, France 5.6%, Italy 5.4%, South Korea 5.4%, Russia 4.5% (2006)

Economic aid - recipient:
$104 million (2005 est.)

Reserves of foreign exchange and gold:
$58.46 billion (2006 est.)

Debt - external:
$13.73 billion (2006 est.)

Stock of direct foreign investment - at home:
$4.345 billion (2006 est.)

Stock of direct foreign investment - abroad:
$138 million (2006 est.)

Market value of publicly traded shares:
$38.72 billion (2005)

Currency (code):
Iranian rial (IRR)

Exchange rates:
rials per US dollar - 9,227.1 (2006), 8,964 (2005), 8,614 (2004), 8,193.9 (2003), 6,907 (2002)
note: Iran has been using a managed floating exchange rate regime since unifying multiple exchange rates in March 2002