Page 14 - IRANRptAug20

4.0​ Real Economy
Iran - Main Macro Indicators
2012 2013 2014 2015 2016 2017 2018
Annual GDP (y/y)
-6.6 -1.9 4.3 4.4 13.4 3.8 -4.9
GDP (per capita) (USD)
7,719.77 7,931.07 6,007.46 5,579.25 4,899.68 5,230.19 5,494.06
GDP: Final consumption expenditure: Private (IRR bn)
3,208,428 4,505,167 5,262,427
5,656,000
6,236,000
7,032,000
3,899,000 (Q1-Q2)
GDP: Final consumption expenditure: Government (IRR bn)
713,990 868,334
1,160,266
1,301,000
1,700,000
1,952,000
1,134,000 (Q1-Q2)
GDP: Gross fixed capital formation, (IRR bn)
1,809,515 2,386,025 3,048,276
2,606,000
2,552,000
2,885,000
1,578,000 (Q1-Q2)
GDP: Exports, (lRR bn)
473,222 376,386 376,240 421,236 / /
GDP: Imports, (IRR bn)
449,701 345,821 281,210 265,210 / /
Source: CEIC; Central Bank of Iran
4.1​ Industrial production
Strong performance of Iran’s manufacturing sector prompts White House to target blue-collar industries with executive order
Iran’s strengthening manufacturing sector has become pivotal in the country’s resilience to US sanctions, so much so that the White House has issued a new executive order targeting the “construction, mining, manufacturing, or textiles sectors of the Iranian economy”.
“The [Trump] administration is in effect targeting the private sector and the millions of blue-collar workers in the country’s factories, contrary to its stated intention of using sanctions to restrict the financial resources of government authorities,” Esfandyar Batmanghelidj, founder of Bourse & Bazaar—a media company that supports business diplomacy between Europe and Iran through publishing, events and research—​wrote​ ​in a June 14 piece for Bloomberg Opinion.
Iran officially earned just $8.9bn from the sale of oil and related products in 2019-20, down from a peak of $119bn less than a decade ago.
Noted Batmanghelidj: “Like their counterparts in other hydrocarbon-dependent states, Iranian officials have long talked about the importance of reducing reliance on oil revenues. But the need for transition to a non-oil economy has become critical, following the Trump administration’s reimposition of secondary sanctions in November 2018, which has left China as the only major purchaser of Iranian crude.
“The transition is well under way in the private sector, with a boom in manufacturing. For the past decade, companies have been looking beyond Iran’s large domestic market to export an increasingly diverse range of goods to a wider range of markets, turning the devaluation of the rial to their advantage. In 2019-20, non-oil exports, totalling $41.3 billion, exceeded oil exports for the first time in Iran’s modern history. Around half of Iran’s non-oil exports were in manufactured goods, meaning that Iran’s factories earned more than double what the country’s oil rigs earned in export revenue last year.”
14​ IRAN Country Report August 2020 www.intellinews.com