Economy of Iran - Macroeconomic Trends

Macroeconomic Trends

More than two-thirds of the population (74 million people) is under the age of 30. Net primary school enrollment is almost 100%, suggesting a secondary "demographic boom".

Iran ranks 40th in science production and first in scientific growth in the world in 2011. According to The Economist, Iran ranked 39th in a list of industrialized nations, producing $23 billion of industrial products in 2008. Between 2008 and 2009 Iran moved to 28th from 69th place in annual industrial production growth.

In the early 21st century the service sector was the country's largest, followed by industry (mining and manufacturing) and agriculture. In 2008 GDP was estimated at $382.3 billion ($842 billion PPP), or $5,470 per capita ($12,800 PPP).

Nominal GDP is projected to double in the next five years. However, real GDP growth is expected to average 2.2% a year in 2012-16, insufficient to reduce the unemployment rate. There are virtually millions of people who do not pay taxes in Iran and hence operate outside the formal economy. According to the International Monetary Fund, Iran is a "transition economy", i.e., changing from a planned to a market economy.

The United Nations classifies Iran's economy as semi-developed. According to Goldman Sachs, Iran could become one of the world's largest economies in the 21st century.

Energy subsidies left the country 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.