Iran Economy 2001

Economy - overview: Iran's economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures. President KHATAMI has continued to follow the market reform plans of former President RAFSANJANI and has indicated that he will pursue diversification of Iran's oil-reliant economy although he has made little progress toward that goal. The strong oil market in 1996 helped ease financial pressures on Iran and allowed for Tehran's timely debt service payments. Iran's financial situation tightened in 1997 and deteriorated further in 1998 because of lower oil prices. The subsequent zoom in oil prices in 1999-2000 afforded Iran fiscal breathing room but does not solve Iran's structural economic problems, including the encouragement of foreign investment.

GDP: purchasing power parity - $413 billion (2000 est.)

GDP - real growth rate: 3% (2000 est.)

GDP - per capita: purchasing power parity - $6,300 (2000 est.)

GDP - composition by sector:
agriculture: 24%
industry: 28%
services: 48% (2000 est.)

Population below poverty line: 53% (1996 est.)

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

Inflation rate (consumer prices): 16% (2000 est.)

Labor force: 17.3 million
note: shortage of skilled labor (1998)

Labor force - by occupation: agriculture 33%, industry 25%, services 42% (1999 est.)

Unemployment rate: 14% (1999 est.)

Budget:
revenues: $27 billion
expenditures: $27 billion, including capital expenditures of $NA (1999)

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

Industrial production growth rate: 4.4% (nonoil) (1999)

Electricity - production: 103.054 billion kWh (1999)

Electricity - production by source:
fossil fuel: 93.16%
hydro: 6.84%
nuclear: 0%
other: 0% (1999)

Electricity - consumption: 95.84 billion kWh (1999)

Electricity - exports: 0 kWh (1999)

Electricity - imports: 0 kWh (1999)

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

Exports: $25 billion (f.o.b., 2000 est.)

Exports - commodities: petroleum 85%, carpets, fruits and nuts, iron and steel, chemicals

Exports - partners: Japan, Italy, UAE, South Korea, France, China

Imports: $15 billion (f.o.b., 2000 est.)

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

Imports - partners: Germany, South Korea, Italy, UAE, France, Japan

Debt - external: $7.5 billion (2000 est.)

Economic aid - recipient: $116.5 million (1995)

Currency: Iranian rial (IRR)

Currency code: IRR

Exchange rates: Iranian rials per US dollar - 1,754.71 (January 2001), 1,764.43 (2000), 1,725.93 (1999), 1,751.86 (1998), 1,752.92 (1997), 1,750.76 (1996)
note: Iran has three officially recognized exchange rates; the averages for 1999 are as follows: the official floating rate of 1,750 rials per US dollar, the "export" rate of 3,000 rials per US dollar, and the variable Tehran Stock Exchange rate, which averages 7,863 rials per US dollar; the market rate averages 8,615 rials per US dollar

Fiscal year: 21 March - 20 March

NOTE: The information regarding Iran on this page is re-published from the 2001 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Iran Economy 2001 information contained here. All suggestions for corrections of any errors about Iran Economy 2001 should be addressed to the CIA.