The iranian economy remains dominated by public and semipublic enterprises, which further entrenched their position during the isolation enforced by years of sanctions. Exports of goods and services for iran from the world bank for the world development indicators wdi release. Weblinks are available in the pdf version found at. The economy of iran is dominated by oil and gas production which makes up the largest revenue source for the government. It exported 4 million barrels to france, spain, and russia. Jun 03, 2014 iranian oil exports are on course to run well above the levels the obama administration said they would when the u. New books archaeology, anthropology architecture art biographies, memoirs business, economy children crafts, rugs culture, society diaspora ethnicities, minorities film, video food foreign relations iranus relations geography, nature history ancient history modern history pahlavi era history qajar era humor, satire. Six charts that show how hard us sanctions have hit iran. The iranian economy wiiw the vienna institute for international. Last spring, president trump announced his intention to withdraw the united states from the joint comprehensive plan of action jcpoa and to reimpose u.
In 1908, iran was the first country in the persian gulf to discover oil. But both the countrys oil output and its gdp fell noticeably under. Since the 1979 revolution, the iranian economy has been beset by a costly eightyear war. Tasnim an iranian trade official said the value of the countrys nonoil exports has increased by 100 times over the past. Since restrictions ended in january 2016, iran has recovered quickly.
Iran, economic sanctions, oil embargo, trade restrictions, us, eu, gcc, israel. The objective of this study is to empirically examine the impact of oil revenues and non oil exports along with other relevant factors on industrial production during the period 1961 2010 in the iranian economy. For example, the non oil exports to gdp ratio was 1%, 6. This page provides forecast and historical data, charts, statistics, news and updates for iran exports of goods and services. Oil exports and the iranian economy this paper develops a long run growth model for a major oil exporting economy and derives conditions under which oil revenues are likely to have a lasting impact. The iranian economy, however, has contracted severely, partly because of the sanctions, but. Iranian oil exports blogs, comments and archive news on. Since 2006 and with the development of the iranian nuclear conflict, the united nations has frequently imposed economic and financial sanctions against iran.
Pdf the future of irans oil and its economic implications. The world bank and imf estimates of economic decline take into account a sharp drop in iran s oil exports. Copper was the fastestgrowing among the top 10 export categories, up by 215. The research will be conducted on the basis of three significant past events which had deep economic impact. About 11 percent of irans land surface is classified as arable. Prior to 1979, iran s economic development was rapid.
Iranian oil exports on course to blow past limits cnbc. From 2015, when the joint comprehensive plan of action was implemented, until may 2018, when the united states abruptly withdrew from it, iran was free to do business with the world. Cia world factbook this page was last updated on december 7, 2019. This paper develops a long run growth model for a major oil exporting economy. These figures are calculated on an exchange rate basis, i. During 20112015, the global community pressured iran economically, and iran s economy shrank as its crude oil exports fell by more than 50%, and iran was rendered unable to access its foreign exchange assets abroad. He has taught economics at several american universities, and has written many books on iran most recently the dynamic of the iranian revolution 1991. Even after 100 years of exploration and production, iran s current estimated reservetoextraction ratio suggests a further 87 years of oil production even in the absence of new oil field discoveries or major advances in oil exploration and extraction technologies. The iran economic monitor is a product of the world banks global practice for. Iran s economy is highly dependent on the production and export of crude oil to finance government spending, and consequently is vulnerable to fluctuations in international oil prices. Exports to iran in general, unless licensed by ofac, goods, technology, or services may not be exported, reexported, sold or.
After an initial 90day wind down period, the first round of sanctions went into effect. Both oil exporters and importers are likely to feel the effects of oil price. An investigation of the impact of non oil exports on. Jan 06, 2020 irans top 10 exports are highly concentrated, accounting for 89. Mar 07, 2017 the islamic republics exports tumbled in 2011 as international sanctions targeted its oil industry, cutting production.
The iranian economy has greatly benefited from the lifting of international sanctions in. This book illustrates how the postrevolutionary economic policies in iran were. If congress approves the deal, iranian oil will be widely available for the first time in years. Transport costs on trade with iran are expected to decline. The nationalization of the iranian oil industry persian. Lifting economic sanctions on iran world bank documents. Irans oil exports hit record high as sanctions loom. It is dominated by oil and gas production, although over 40 industries are directly involved in the tehran stock exchange, one of the best performing exchanges in the world over the past decade. The second component is the removal or significant reduction of the cargo inspections on iranian exports and imports that were imposed as part of the sanctions regime. Iran is the most immediate cause of the bearishness. Iranian oil exports latest breaking news, pictures, videos, and special reports from the economic times.
Jul 04, 2018 washington insists the world has enough spare oil capacity to replace iranian crude, and trump has said that he has persuaded saudi arabia to balance the market by boosting its own production. Us oil exports to india soar ahead of sanctions on iran the. One, contrary to analysts and banks projections, iran will not lose a single barrel of oil exports. Unlike the iraqis, who transferred oil export from the war torn gulf to other directions, the iranians continued to rely on exports through the gulf region. Iran s economy is expected to contract further by 8. However, non oil exports play a significant role in iranian export and enjoyed a growing share in total foreign earnings in recent years. It may be suggested that turkeys logistics policies should be reevaluated and iran as an important regional player in order to increase the transit trade volume. One hundred years of oil income and the iranian economy. After the islamic revolution of 1978, iran has been affected by economic sanctions imposed by western countries especially the u. Iran s economy is marked by statist policies, inefficiencies, and reliance on oil and gas exports, but iran also possesses significant agricultural, industrial, and service sectors.
Other major industries include petrochemicals, fertilizers, caustic soda, car manufacture, pharmaceuticals, telecom. The effects of oil and nonoil exports on economic growth. Iran has the second largest economy in the middle east and east africa region due to the large size of the gas and oil sector in this state. Irans crudeoil exports increase to level last seen in 1970s. The economist explains why iran is finding it hard to. Most visited articles the effect of economic sanctions on irans export. Petroleum has been the primary industry in iran since the 1920s. Mehdi fatemi abstract growth and economic development are the primary goals of all economies and proper trade policy is one of the essential tools to achieve this goal. Nationalization of the iranian oil industry wikipedia. Its oil sector, mostly located in the war areas of southwestern iran, was constantly hit by the iraqis. Iran s economy had received a boost when the united states lifted sanctions in 2015.
The plummeting exports comes after the expiration of us waivers to major importers of iranian oil and tightening of banking sector restrictions in addition to new sanctions being imposed on the countrys petrochemicals, metals, mining, and maritime sectors. The iran nuclear agreement and iranian energy exports, the. Academic contributions have written about differences in petroleum revenue management in various countries. Those sanctions squeezed iran s oil exports and access to global financial markets, resulting in soaring inflation and plummeting foreign currency reserves. The effect of economic sanctions on irans exports by. This paper, using a new quarterly data set on the iranian economy over the period 1979q12006q4, provides a small quarterly model of the iranian economy, where the longrun implications of oil exports for real output, inflation, real money balances, and the real exchange rate are tested. At that time, iran s gdp per capita dropped by 50%, according to salehiisfahani. By differentiating the impact of exports into oil and non oil, our. Pdf the impact of oil revenues on the iranian economy and the. Role of nonoil exports in enhancing irans economic. It is a rich and wellresearched book, which attests to the authors considerable effort and devotion to her subject matter, and is likely to inform future research on the political economy of iran for years to. Irans crude oil exports last month beat the previous record of 2. In an economic update on iran published on october 9, the world bank came up with a similar figure of 8. On the whole, iran s political economy since the revolution is a welcome addition to the literature on iranian politics and economics.
Economic analysts emphasize on promoting non oil exports as a successful. Since 2000, iran has enjoyed broadbased economic growth. Iran exports of goods and services moodys analytics. Jul 12, 2018 us crude oil exports to india hit a record in june and so far this year are almost double last years total as the asian nations refiners move to replace supplies from iran and venezuela in a win. As sanctions bite, irans resistance economy is kicking in. Growth performance in 2016 exceeded expectations based on the bounce back in oil production and exports. In fact, if behavior follows the example from 2012, there is the possibility of a short spike in iranian exports just before the effective date, after which a slow decline may set in. When iranian oil begins to flood the market, it will influence the world oil supply and oil prices. It is the worlds eighteenth largest by purchasing power parity ppp. Oil exports and the iranian economy iza institute of. According to the world bank, the gross domestic product gdp in 2015 has reached 393. Pdf this paper examines the economic transformation of iran in a global context through the.
Petroleum constitutes the bulk of irans exports, valued at usd 46. The iranian government directly owns and operates hundreds of stateowned enterprises and indirectly controls many companies affiliated with the countrys security. It is intended for a wide audience, including policy makers, business leaders, financial market participants, and the community of analysts and professionals engaged in iran. In our simulations, the lifting of economic sanctions on iran has three components. The impact of oil revenues on the iranian economy and the gulf states. The 201 2 restrictions on imports of iranian oil by the eu were the most farreaching of the sanctions as they curtailed the volume of exports of iran s most important export commodity.
In second place for improving export sales were vegetables via its 69. The most important driver of iranian economy is oil, and iran has benefited from the high price. Iran s crude oil production and export 4, and consumption of refined products 5 between 1980 and 2016. Oil production and exports rebounded strongly, which spilled over. In our previous studies, we evaluated the longterm availability of resources for the energy 2, 3 and agriculture 4 sectors as two of the main pillars of the iranian economy. May 19, 2016 how oil sanctions may have helped irans economy. In rough terms, the net value of agricultural import i. The following year, after the deal was implemented, iran s economy bounced back and gdp grew 12. Iran exports by category this page displays a table with iran exports by category in u. The international community still overwhelmingly backs the nuclear deal, which opened new opportunities to deepen economic relations with iran. Oil and the economy the oil conundrum briefing the. The economy of iran has an economic complexity index eci of 0. The first major oil field in iran was discovered in 1908 with oil production flowing in sizeable amounts from 1912. This approach contrasts with the standard literature on.
Library of congress federal research division country profile. The topic of this paper is to examine the basic relationship between oil price developments and economic crises. Irans return to world oil markets deloitte united states. Implications of the iraniraq war einternational relations. This paper investigates the relationship between nonoil exports and iranian. Jahangir amuzegar served as minister of commerce and minister of finance in the shahs government, and was on the executive board of the international monetary fund. Traditionally an agrarian society, by the 1970s the country had undergone significant industrialization and economic modernization. Iran has always been one of indias main suppliers of oil, second only to iraq and saudi arabia, with exports that totalled more than 27 million tonnes last year. The most productive agricultural land, bordering the caspian sea, makes up about 5. Official announces 100fold increase in irans nonoil exports in 40 years. According to the world bank, the gross domestic product in 2015 has reached 393.
For 2014, iranian crude oil production averaged about 2. Many scholars see the natural resource wealth in some countries as a natural resource blessing, while in others it has been referred to as a natural resource curse. As in most oilexporting developing countries, irans ruling. Effect of oil revenues and nonoil exports on industrial. Although iran has vast petroleum reserves, the country lacks adequate refining capacity and imports gasoline to meet domestic energy needs. Its primary export markets are china, india, south korea, turkey, and japan. Located in a dry climatic zone, iran is currently experiencing. Iranian economy and not the abundance of revenues from oil exports. The 201 2 restrictions on imports of iranian oil by the eu were the most farreaching of the sanctions as they curtailed the volume of exports of iran s most important export. The numbers of the international monetary fund points that. Irans top 10 exports are highly concentrated, accounting for 89. In february 2016, iran began shipping oil to europe for the first time in three years.
Oil exports and the iranian economy faculty of economics. More than 75% of iran s oil exports go to china and the asiapacific region while the. Iran is one of the worlds largest oil producers, and the export of oil and gas is worth billions of dollars each year. This entry provides the total us dollar amount of merchandise exports on an f. This approach contrasts with the standard literature on the dutch disease and the resource curse, which. The sanctions resulted in a sharp fall in iran s oil exports from over 3. Despite tehrans attempts to diversify the economy, the oil and gas industry is still the critical engine of economic growth. Irna irans ministry of industry, mine and trade reported on sunday that nonoil exports stood at 18. Request pdf oil exports and the iranian economy this paper develops a long run growth model for a major oil exporting economy and derives conditions under which oil revenues are likely to have. A vast body of resource curse literature has studied the role of governance regimes, legal frameworks. Although iran has vast petroleum reserves, the country lacks adequate refining capacity and.834 1363 585 844 1589 909 750 1175 548 529 1617 1245 289 843 246 100 700 256 395 28 743 160 859 1392 813 485 954 971 630 13 641 498 89 1485 193 411 729