Page 16 - IRANRptSep20

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
Iranian government pledges 40 trillion rial to drive indigenisation of foreign product parts
Strong performance of Iran’s manufacturing sector prompts White House to target blue-collar industries with executive order
Iran has set aside Iranian rial (IRR) 40tn ($980mn at the official exchange rate, $172mn at the free market rate) for industrial indigenisation projects, Mehr News Agency has reported.
The country has a long history of taking foreign technology and making it its own. Examples of this in the auto industry include the localisation of the Peugeot 206 and 405 cars. The parts for these vehicles are now made by Iranian companies.
Mehdi Sadeghi Niaraki, Iran’s deputy industry, mining and trade minister for industrial affairs, reportedly said that the project was aimed at helping local businesses invest in new technology so that Iran can reverse engineer products and rely less on international supply chains, thus bringing the cost of production down markedly.
“In line with the ‘surge in production’ movement, the Ministry of Industry, Mining and Trade is trying to use all existing capacities in the country,” the official said while launching the new programme.
In July, Niaraki said €277mn was signed over to auto part companies and automakers to indigenise the production of parts seen in foreign brands. It is believed the parts he was referring to included Peugeot 301 components.
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
16​ IRAN Country Report September 2020 www.intellinews.com