Gross Domestic Product (GDP) is a monetary measure of the market value of all final goods and services produced in a period by a country.
Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons. In Iran, the central bank reports country’s GDP annually by gathering information from all the sectors including agriculture, oil, construction and etc.
In this article, we will review last year`s GDP of Iran (2015-2016) as a whole and by each sector.
Based on the primary calculation, Gross Domestic Product of Iran reaches 6,691.1 thousand billion Rials which shows 12.5 Percent growth comparing to the last year (5,946.7 thousand billion Rials).
Studying share of different economy’s sectors in GDP demonstrates that in (2015-2016) added value of Oil, Industry, Commerce and Restaurant and Hotel services, Transportation and Inventory and Communication sectors plays the most important role in GDP’s growth with shares of 9.8, 0.8, 0.7 and 0.7 percent in order.
In return, added value of Construction sector decreases 0.8 percentage of GDP’s 12.5% growth which is the greatest reducer.
Based on the latest information from the Ministry of Agriculture, estimated production of agricultural, garden and livestock products grow by 8.2, 6.1 and 4.6 percentage respectively comparing to the last year.
Based on these, the growth of agriculture sector’s added value was 4.2 percent in 1395.
Based on the primary calculations, added value of Oil sector to the constant price of 1390 estimated 1,524.5 billion Rials which shows 61.6 Percent increase from the last period.
This growth come from elimination of sanctions and increment in production and export of crude oil, refinery products, condensates and gas liquids and natural Gas.
Added value of Industry sector reaches 781 thousand billion Rials which shows 6.9% growth. This rate was -4.6% for (2015-2016).
Cooperation of banking system with the Industry sector and help financing little and medium sized firms plays important role in this sector’s growth.
In Construction sector, the value of investment in urban construction by private sector decrease by 14.1% comparing to the last period.
It is expected that with the improvement in production and exportation of crude oil and restructuring of taxation system, payment by the government for construction costs will improve, which has direct influence in construction sector’s boom, and economic growth of this sector will be positive in the current year.
Although the primary surveys show that improvement in production and exportation of crude oil has the major part in GDP growth by 12.5%, however, economic growth without oil also grew constantly in the last year.
Economic growth without oil was -1.8% in first season of (2015-2016), but for the rest of the year, this index experienced 3.9%, 5.4% and 5.6% growth for other seasons of the last year.
Moreover, this index has increased from -3.1% in (2015-2016) to 3.3% in (2015-2016).
Following economic reforms, supporting production by the banking system, improvement of different businesses and deepening the stock market, it can be expected that economic growth without oil will improve in current year.
For More information please contact us.