📋Overview

Iran operates a traditionally state-controlled economy undergoing partial reform of state-owned financial entities. The economy is structured around strong oil and gas sectors, agriculture, and services, which comprise 36.4% industry, 47.9% services, and 13% agriculture respectively (2024). However, the economy faces severe headwinds: massive inflation at 32.5% (2024), exchange rate depreciation, international sanctions, and investor uncertainty have driven increasing poverty. Real GDP growth remains modest at 3% (2024), while real GDP per capita stands at $16,200 (2024 est.) in purchasing power parity terms, though nominal GDP per capita is only $5,190 (2024).

📈Economy

Iran's economy generated $1.486 trillion in real GDP (PPP, 2024 est.) or $475.3 billion at official exchange rate (2024), with a population of 91.6 million. The labor force comprises 28.6 million people (2024 est.), facing an unemployment rate of 8.3% (2025), with youth unemployment particularly severe at 22.8% (2024 est.). Household consumption represents 50.5% of GDP by end use, while exports of goods and services account for 22.9% and imports for 26.8% (2024 est.). Income inequality is moderate with a Gini coefficient of 35.9 (2023 est.), though the poorest 10% receive only 2.8% of income while the richest 10% receive 28.2% (2023 est.). Food comprises 27.9% of household expenditures (2023 est.). Industrial production growth is 2.8% annually (2024 est.), while inflation at 32.5% (2024 est.) severely erodes purchasing power.

📤Exports

📥Imports

💪Strengths

🔗Dependencies

⚖Trade impact

Iran's economy significantly influences global energy markets and regional trade patterns. As a major oil and natural gas producer with 4.112 million barrels daily production (2023 est.) and 265.088 billion cubic meters of annual gas production (2023 est.), Iran affects global energy prices and supply reliability, particularly for Asian markets. China dominates Iran's trade relationship, accounting for 35% of exports and 34% of imports (2023), making Iran a key component of China's resource security strategy. Iran's $100.031 billion in annual exports (2024 est.) supply critical raw materials—plastics, iron ore, and refined copper—to manufacturers across Asia, while its natural gas exports of 14.698 billion cubic meters (2023 est.) contribute to regional energy supplies. Conversely, Iran's trade deficit of $17.145 billion (2024) and reliance on Chinese, Turkish, and UAE imports reflects its integration into Asian supply chains. International sanctions and exchange rate depreciation have disrupted Iran's role as a stable supplier, forcing trading partners to seek alternative sources and reducing Iran's influence in international commerce. The 32.5% inflation rate (2024 est.) and massive currency depreciation further reduce Iran's purchasing power in global markets, affecting its demand for imported goods and its ability to invest in technology upgrades or infrastructure improvements that would enhance competitiveness.

🏢Top contributors to GDP

• National Iranian Oil Company (NIOC)Oil and Gas Exploration & ProductionOperates Iran's crude oil production of 4.112 million barrels per day (2023 est.), the foundation of export revenues and government budgets
• Iran Gas Trunkline Company (IGTC)Natural Gas Production and ExportManages production of 265.088 billion cubic meters annually (2023 est.) and exports of 14.698 billion cubic meters (2023 est.), critical to energy sector GDP contribution
• National Petrochemical Company (NPC)Petrochemicals ManufacturingProduces plastics and petrochemical derivatives, Iran's top export commodity by value (2023), supporting the 36.4% industrial sector share of GDP
• Iran Aluminium Company (IAC)Nonferrous Metal FabricationContributes to refined copper and metal fabrication industries, part of the diversified industrial base representing 36.4% of GDP (2024 est.)
• Khorasan Cement CompanyCement and Construction Materials ManufacturingProduces cement for domestic construction and export, part of the construction materials industry within the 36.4% industrial sector