Capital City: Tehran
	It is %T:%M %A in Teheran

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Economic trends

Iran's today’s economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private ventures. The economy has been growing steadily for last several years, thanks mainly to rising oil prices. The GDP growth rate was 4.9% in 2006, 6% in 2007 with a forecast of 6% for 2008. In order to diversify its economy and become less dependent on oil sector, the government is opening selected key sectors to foreign investors but the progress has been slow. Iran’s sensitive political environment (due to its dispute with the international community over nuclear activities) is the main hurdle in attracting foreign investments. Social tensions are also high because of a growing unemployment rate; estimated at 15% of the active population (higher in younger generation). Inflation is high; estimated at 19% in 2007.

Main branches of industry

The agriculture sector contributes nearly 10% to the GDP but employs one-third of the active population. Only 10% of the land is arable and primitive farming methods are used. The main crops are pistachios (world largest producer), wheat, rice, oranges, tea, and cotton. Illicit cultivation of the opium poppy is fairly common. Iran is rich in mineral resources, mainly: copper (5% of the global reserves), oil (4th largest producer in the world) and gas (2nd largest producer in the world). The oil sector generates almost 50% of the total State revenue. The industrial sector contributes nearly 45% to the GDP. Textiles industry is the second most important after oil sector. Other major industries are sugar refining, food-processing, petrochemicals, cement, and building & construction. Traditional handicrafts such as carpet weaving and the manufacture of ceramics, silk, and jewellery are also important to the economy. The services sector is growing and contributes nearly 45% to the GDP.

International trade

Iran is a member of the Organization of Petroleum Exporting Countries (OPEC). The share of foreign trade in country’s GDP is nearly 60%; with oil accounting for 80% of the export revenues. The top three export partners are: Japan, Italy and France. Besides oil, Iran mainly exports fruits & nuts, iron & steel, organic chemicals, textiles and carpets. The top three import partners are: the UAE, Germany, and France. The commodities mainly imported are: machinery, iron & steel, electric & electronic equipment, and cereals.