Editing Economy of Iran (section)

== Macroeconomic trends ==
{{See also|Demographics of Iran|Science and technology in Iran|International rankings of Iran}}
[[Science in Iran|Iran's national science]] budget in 2005 was about $900 million, roughly equivalent to the 1990 figure.<ref>[http://www.sciencemag.org/cgi/content/full/309/5742/1802?maxtoshow=&HITS=10&hits=10&RESULTFORMAT=&fulltext=iran&searchid=1138556046976_3291&FIRSTINDEX=0&journalcode=sci "Science in Iran: An Islamic Science Revolution?"]. ''[[Science (journal)|Science]]''. September 16, 2005 (subscription required). Retrieved November 15, 2008.</ref> By early 2000, Iran allocated around 0.4% of its GDP to [[Science in Iran#Research expenditure|research and development]], ranking the country behind the world average of 1.4%.<ref name="autogenerated1">Reza Malekzadeh, [[Azarakhsh Mokri]], Pejman Azarmina: [http://www.ams.ac.ir/AIM/0141/malekzadeh0141.html "Medical Science and Research in Iran"] {{Webarchive|url=https://web.archive.org/web/20170517140630/http://www.ams.ac.ir/AIM/0141/malekzadeh0141.html |date=May 17, 2017 }}. Academy of Medical Sciences of Iran. Retrieved December 4, 2008.</ref> In 2009 the ratio of research to GDP was 0.87% against the government's medium-term target of 2.5%.<ref name="Ministry of Commerce">[https://web.archive.org/web/20130310232210/http://www.irantradelaw.com/wp-content/uploads/2010/03/Irans-Foreign-Trade-Regime-Report.pdf – The foreign trade regime of the Islamic Republic of Iran]. [[Ministry of Commerce (Iran)]] (2009). Retrieved April 8, 2010.</ref> Iran ranked first in scientific growth in the world in 2011 and 17th in science production in 2012.{{citation needed|date=November 2020}}

Iran has a broad and diversified [[Industry of Iran|industrial base]].<ref>[http://www.ft.com/cms/s/0/7de6a358-b798-11e4-8807-00144feab7de.html#axzz47HQajJna Judith Evans: Fund managers on the Iranian frontier]. ''Financial Times'', March 1, 2015. Retrieved April 29, 2016.</ref> According to ''[[The Economist]]'', Iran ranked 39th in a list of industrialized nations, producing $23 billion of industrial products in 2008.<ref>{{cite web|url=http://www.iran-daily.com/1388/3410/html/economy.htm |title=Iran 39th Industrialized Country |access-date=May 1, 2010 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20090630090651/http://www.iran-daily.com/1388/3410/html/economy.htm |archive-date=June 30, 2009 }}. ''The Economist'', May 27, 2009.</ref> Between 2008 and 2009 Iran moved to 28th from 69th place in annual industrial production growth because of its relative isolation from the [[2008 financial crisis]].<ref>{{cite web |url = http://old.tehrantimes.com/index_View.asp?code=215089 |title = Iran advances 41 places in industrial production |work = Tehran Times |date = February 28, 2010 |access-date = May 10, 2010 |archive-url = https://web.archive.org/web/20120820025409/http://old.tehrantimes.com/index_View.asp?code=215089 |archive-date = August 20, 2012 }}</ref>

In the early 21st century, the service sector was Iran's largest, followed by industry (mining and manufacturing) and agriculture. In 2008, Iran's GDP was estimated at $382.3 billion ($842 billion PPP), or $5,470 per capita ($12,800 PPP).<ref name="CIA"/>

In 2010, the nominal GDP was projected to double in the next five years.<ref>[http://www.payvand.com/news/10/apr/1042.html Iran's GDP to grow by $55.5B] {{Webarchive|url=https://web.archive.org/web/20200115020156/http://www.payvand.com/news/10/apr/1042.html |date=January 15, 2020 }}. ''The Economist'', April 6, 2010. Retrieved April 7, 2010.</ref> Real GDP growth was expected to average 2.2% a year in 2012–16, insufficient to reduce the unemployment rate.<ref name=EIU5>[http://country.eiu.com/article.aspx?articleid=648671049&Country=Iran&topic=Summary&subtopic=At+a+glance&subsubtopic=Iran+at+a+glance%3A+2012-16 Iran at a glance]. [[Economist Intelligence Unit]] (subscription required), December 12, 2011. Retrieved January 8, 2012.</ref> Furthermore, [[sanctions against Iran|international sanctions have damaged the economy]] by reducing [[Ministry of Petroleum (Iran)#Revenues from crude oil|oil exports]] by half, before recovering in 2016.<ref name=ABC1 /><ref>[http://www.payvand.com/news/12/dec/1232.html Economic survey reveals Iran's slowdown] {{Webarchive|url=https://web.archive.org/web/20200112192617/http://www.payvand.com/news/12/dec/1232.html |date=January 12, 2020 }}. Radio Zamaneh, December 26, 2012. Retrieved February 3, 2013.</ref> The [[Iranian rial]] lost more than half of its value in 2012, directing Iran to [[import substitution industrialization]] and a [[resistive economy]].<ref name=ABC1>[https://abcnews.go.com/International/wireStory/iran-leader-unveils-economy-resistance-22576504 Ali Akbar Dareini: Iran Leader Unveils 'Economy of Resistance'.] {{Webarchive|url=https://web.archive.org/web/20140227181859/https://abcnews.go.com/International/wireStory/iran-leader-unveils-economy-resistance-22576504 |date=February 27, 2014 }} Associated Press, February 19, 2014. Retrieved February 19, 2014.</ref><ref>[http://www.ft.com/intl/cms/s/0/55fb9ece-38c5-11e2-981c-00144feabdc0.html#axzz2JrYnyNBf Javier Blas: Sanctions take heavy toll on Iran]. ''Financial Times'', November 28, 2012 (subscription required). Retrieved February 3, 2013.</ref> According to the [[International Monetary Fund]], Iran is a "[[transition economy]]", i.e., changing from a planned to a market economy.<ref name="imf-iran">{{cite book |url = http://www.imf.org/External/Pubs/NFT/2007/iran/market/market.pdf |title = Islamic Republic of Iran: Managing the Transition to a Market Economy |last1 = Jbili |first1 = A. |last2 = Kramarenko |first2 = V. |last3 = Bailén |first3 = J. M. |publisher = The International Monetary Fund |page = xii |date = March 1, 2007 |access-date = February 5, 2011 |isbn = 978-1-58906-441-6 }}</ref>

In 2008, the [[United Nations]] classified Iran's economy as semi-developed.<ref name="Encarta: Iran's entry" /> In 2014, Iran ranked 83rd in the [[World Economic Forum]]'s analysis of the [[Global Competitiveness Report|global competitiveness of 144 countries]].<ref>[http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf The Global Competitiveness Report (2014–2015)]. [[World Economic Forum]], August 2014. Retrieved September 5, 2014.</ref><ref>[http://www.turquoisepartners.com/iraninvestment/IIM-Sep13.pdf Iran Investment Monthly.] {{Webarchive|url=https://web.archive.org/web/20131209205824/http://www.turquoisepartners.com/iraninvestment/IIM-Sep13.pdf |date=December 9, 2013 }} [[Turquoise Partners]], September 2013. Retrieved December 6, 2013.</ref><ref name="WEF">[http://www.turquoisepartners.com/iraninvestment/IIM-Sep13.pdf Iran ranks 69th out of 139 in global competitiveness] {{Webarchive|url=https://web.archive.org/web/20131209205824/http://www.turquoisepartners.com/iraninvestment/IIM-Sep13.pdf |date=December 9, 2013 }}. ''[[Global Competitiveness Report]]'', [[World Economic Forum]] (2010). Retrieved September 18, 2010.</ref> Political, policy and currency stability are regarded as the most problematic factors in doing business in Iran. Difficulty in [[Banking in Iran|accessing financing]] is also a major concern, especially for [[Industry of Iran#Small and medium enterprises|small and medium enterprises]]. Most of Iran's financial resources are directed at trading, [[Smuggling in Iran|smuggling]] and speculation instead of production and manufacturing.{{citation needed|date=November 2020}}

In 2008, according to [[Goldman Sachs]], Iran has the potential to become one of the world's largest economies in the 21st century.<ref name="Goldman Sachs">[http://www.chicagogsb.edu/alumni/clubs/pakistan/docs/next11dream-march%20%2707-goldmansachs.pdf "The N-11: More Than an Acronym"] {{webarchive |url=https://web.archive.org/web/20080911041502/http://www.chicagogsb.edu/alumni/clubs/pakistan/docs/next11dream-march%20%2707-goldmansachs.pdf |date=September 11, 2008 }}. [[Goldman Sachs]], March 28, 2007. Retrieved February 6, 2011.</ref><ref>[http://www.zawya.com/Story.cfm/sidZAWYA20101026044134/Iran%20Ranks%203rd%20Among%20Newly-Emerged%20Economies%20 Iran Ranks 3rd Among Newly-Emerged Economies] {{webarchive |url=https://web.archive.org/web/20110617075656/http://www.zawya.com/Story.cfm/sidZAWYA20101026044134/Iran%20Ranks%203rd%20Among%20Newly-Emerged%20Economies%20 |date=June 17, 2011 }}. ''Zawaya'', October 26, 2010. Retrieved October 26, 2010.</ref> In 2014, Iranian President [[Hassan Rouhani]] stated that Iran has the potential to become one of the [[List of countries by GDP (PPP)|ten largest economies]] within the next 30 years.<ref>[https://www.cnbc.com/2014/01/23/irans-relations-with-europe-will-be-normalized-rouhani.html Iran eyes 'constructive engagement'—but not with Israel]. [[CNBC]], January 23, 2014. Retrieved February 1, 2014.</ref>

One major problem often cited by [[Industry of Iran|Iranian industrialists]] is that the government is [[Taxation in Iran#Protectionism and dumping|not supporting them by authorizing imports of similar parts or products into the country]], undermining their activity and domestic market. This is partly [[corruption in Iran|due to corrupt interests]] inside the government and mismanagement.{{citation needed|date=July 2021}}

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| style="text-align:left; font-size:100%;" |[[#Science in modern Iran|Scientific growth in Iran]]
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| group 1= 617 : 646 : 704 : 781 : 848 : 905 : 985 : 1076 : 1114 : 1148 : 1239 : 1314 : 1250 : 1244 : 1284 : 1336
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[[File:Iran Population (1880-2016).jpg|thumb|300px|right|Changes in [[population of Iran]]]]
{|style="margin:1em; background:#f9f9f9; border:1px #aaa solid; border-collapse:collapse; font-size:90%;"
|- style="background:lightblue;"
! Year <br /> (Source: [[International Monetary Fund|IMF]])<ref name="IMF">[http://www.imf.org/external/pubs/ft/weo/2014/02/weodata/weorept.aspx?sy=1980&ey=2015&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=54&pr1.y=2&c=429&s=NGDP%2CPPPPC%2CPPPEX%2CPCPI%2CLP%2CBCA&grp=0&a= World Economic Outlook Database (Iran)]. International Monetary Fund (October 2014). Retrieved February 16, 2015.</ref>  ||[[Gross Domestic Product|GDP]], current prices <br />(billions [[Iranian rial|IRR]])|| Implied [[Purchasing Power Parity|PPP]]<br /> conversion rate <br /> (USD/IRR)|| [[GDP per capita]], PPP <br />(current [[international dollar]])|| [[Inflation]] index <br />(average [[Consumer Price Index|CPI]]) <br /> (2011/2012=100)|| [[Current account (balance of payments)|Current account balance]]<br />(billions US dollars) || Population <br />(million persons)
|-
| 1980 || style="text-align:right;"|6,622 ||align="right"| 40 ||align="right"| 4,267 ||align="right"| 0.5 || style="text-align:right;"| -3.6 ||style="text-align:center;"| 38
|-
| 1985 ||align="right"| 16,556 ||align="right"| 53 ||align="right"| 6,469 ||align="right"| 0.9 ||align="right"| -0.9 || style="text-align:center;"| 48
|-
| 1990 ||align="right"| 35,315 ||align="right"| 101 ||align="right"| 6,410 ||align="right"| 2.5 || style="text-align:right;"| -2.7 ||style="text-align:center;"| 55
|-
| 1995 ||align="right"| 185,928 ||align="right"| 399 ||align="right"| 7,265 ||align="right"| 9 ||align="right"| 3.4 || style="text-align:center;"| 64
|-
| 2000 ||align="right"| 580,473 ||align="right"| 940 ||align="right"| 9,666 ||align="right"| 21 ||align="right"| 12.5|| style="text-align:center;"| 64
|-
| 2005 ||align="right"| 1,831,739 ||align="right"| 2,025 ||align="right"| 13,036 ||align="right"| 40||align="right"| 15.4 || style="text-align:center;"| 69
|-
| 2010 ||align="right"| 4,333,088 ||align="right"| 3,498 ||align="right"| 16,664 ||align="right"| 82 ||align="right"| 27.3|| style="text-align:center;"| 74
|-
| 2015 (est.) ||align="right"| 13,077,142 ||align="right"| 9,788 ||align="right"| 16,918 ||align="right"| 253 ||align="right"| 6.9 || style="text-align:center;"| 79
|}

=== Reform plan ===
{{See also|Iranian targeted subsidy plan}}
Expansion of [[healthcare in Iran|public healthcare]] and [[foreign relations of Iran|international relations]] are the other main objectives of the fifth plan, an ambitious [[Iranian Economic Reform Plan|series of measures]] that include [[Iranian targeted subsidy plan|subsidy reform]], [[Banking in Iran|banking recapitalization]], [[Iranian rial|currency]], [[Taxation in Iran|taxation]], [[Iranian Customs|customs]], [[Construction in Iran|construction]], employment, nationwide goods and services distribution, social justice and productivity.<ref>[https://www.princeton.edu/irandataportal/laws/labor-civilsociety/targeting-subsidies/full-text/ Full Text of the Law for the Targeting of Subsidies] {{Dead link|date=November 2016}}. [[Princeton University]], November 2009. Retrieved February 16, 2016.</ref> The intent is to make the country self-sufficient by 2015 and replace the payment of $100 billion in subsidies annually with targeted [[social assistance]].<ref name="csmonitor1">{{cite web |url = http://www.csmonitor.com/World/Middle-East/2010/0430/Why-Iran-s-Ahmadinejad-is-pushing-to-cut-popular-government-subsidies |author = Roshanak Taghavi |title = Why Iran's Ahmadinejad is pushing to cut popular government subsidies |publisher = CSMonitor.com |date = April 30, 2010 |access-date = May 5, 2010 }}</ref><ref name="Turq6">[http://www.turquoisepartners.com/iraninvestment/IIM-Jan11.pdf ''Iran Investment Monthly''] {{Webarchive|url=https://web.archive.org/web/20110809205723/http://www.turquoisepartners.com/iraninvestment/IIM-Jan11.pdf |date=August 9, 2011 }}. Turquoise Partners (January 2011). Retrieved January 31, 2011.</ref><ref>{{cite web|url=http://go.worldbank.org/KQD2RP3RX0 |archive-url=http://webarchive.loc.gov/all/20110210062245/http://go.worldbank.org/KQD2RP3RX0 |archive-date=February 10, 2011 |title=Iran{{Snd}} Country Brief |publisher=World Bank |date=September 2010 |access-date=January 30, 2010 }}</ref><ref>[http://www.atiehbahar.com/Resource.aspx?n=1000039 Planned Economic Reforms] {{webarchive |url=https://web.archive.org/web/20110513034614/http://www.atiehbahar.com/Resource.aspx?n=1000039 |date=May 13, 2011 }}. Atieh Bahar (2008). Retrieved May 24, 2009.</ref> These reforms target Iran's major sources of inefficiency and [[distortion (economics)|price distortion]] and are likely to lead to major restructuring of almost all economic sectors.<ref name="Turq6" />

By [[Iranian targeted subsidy plan|removing energy subsidies]], Iran intends to make its industries more efficient and competitive.<ref>[http://www.imf.org/external/pubs/ft/survey/so/2010/INT092810A.htm Iran to Cut Oil Subsidies in Energy Reform]. International Monetary Fund, September 28, 2010. Retrieved October 13, 2010.</ref> By 2016, one third of Iran's economic growth is expected to originate from productivity improvement. Energy subsidies left the economy as  one of the world's least energy-efficient, with [[energy intensity]] three times the global average and 2.5 times higher than the Middle Eastern average.<ref name="RFE">Reza Taghizadeh (June 9, 2010): [http://www.rferl.org/content/Sanctions_And_Irans_Achilles_Heel/2066744.html Sanctions And Iran's Achilles Heel]. ''Radio Free Europe''. Retrieved October 13, 2010.</ref> Notwithstanding its own issues, [[Banking in Iran|the banking sector]] is seen as a potential hedge against the removal of subsidies, as the plan is not expected to directly impact banks.<ref>[http://www.turquoisepartners.com/iraninvestment/IIM-Oct10.pdf ''Iran Investment Monthly''] {{Webarchive|url=https://web.archive.org/web/20101214141840/http://www.turquoisepartners.com/iraninvestment/IIM-Oct10.pdf |date=December 14, 2010 }}. Turquoise Partners (October 2010). Retrieved October 30, 2010.</ref>