Iran Economy 2008

Economy - overview:
Iran's economy is marked by an inefficient state sector, 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. High oil prices in recent years have enabled Iran to amass nearly $65 billion in foreign exchange reserves, but have not eased economic hardships such as high unemployment and inflation.

GDP (purchasing power parity):
$852.6 billion (2007 est.)

GDP (official exchange rate):
$206.7 billion (2007 est.)

GDP - real growth rate:
4.3% (2007 est.)

GDP - per capita (PPP):
$12,300 (2007 est.)

GDP - composition by sector:
agriculture: 11%
industry: 45.3%
services: 43.7% (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:
11% according to the Iranian government (June 2007)

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% (July 2007 est.)

Investment (gross fixed):
17% of GDP (2007 est.)

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

Public debt:
23.2% 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:
132.5 billion bbl based on Iranian claims (1 January 2006 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:
$19 billion (2007 est.)

Exports:
$76.5 billion f.o.b. (2007 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:
$61.3 billion f.o.b. (2007 est.)

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:
$69.2 billion (2007 est.)

Debt - external:
$13.8 billion (31 December 2007 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:
$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