Economic Scenario in Iran
Iran’s economy has always been a very vulnerable one; religion gives into a lot into the business of the country. Based on its ample gas and oil reserves, it is known as ‘energy superpower’. Below an outline of the same is given...
There are various sectors from which Iran economic is structured; beginning with the hydrocarbon sector, the agricultural sector as well as the service sector. Apart from this, the country also has a sector which deals with manufacturing services and financial services. In the case of Iran world rank, it has secured a position at number two in natural gas reserve. Also, the country enjoys a fourth rank in the section of proven crude oil services. Last but not least, it can in no way be denied that the majority of the country’s finance depends on the revenue they extract from the oil sector.
The taxes are dealt with under two major columns – one is the Top Personal Income Tax Rate, and the other is the Top Corporate Tax Rate, the former sums up to 35 percent while the latter sums up to 25 percent. Property Tax is another distinct section which has on itself levied a standard tax. A numerical workout has shown that the entire amount of tax is equal to 8.0 % of the whole of the domestic income. As of the calculation of the past three years, the government’s expenditure has summed up to a percentage of 18.5 of Iran’s output. As for the budget deficits and also the public debt, the amount is 2.1 % and 40.9 % respectively of the country’s output.
The United States of America has always been a very important game-changer for most of the country, Iran may be said to be most exposed. This first began when U.S. sanctions were implemented out around the middle of 2018. As a consequence of it, almost 50 % of the import and export of the country was stopped. As a result of this halt, almost 600,000 barrels of oil were wasted, which came as a big blow to the economy of the country. At this point of time, Iran’s Bonyad came to be of great help. Bonyad is the religious foundations which constitute an important part of the country.
Gross Domestic Product for Iran can be counted to be $458 .500 billion as for 2019. The GDP rank as to the calculations of 2018 is 27th. There has been a considerable rise in the GDP percentage through the years from 2017 to 2019; in 2017 it was 3.8 %, in 2018 4.9 % and in 2019 there was quite a big leap to 8.7 %. Also, one can see that the GDP per capita is $5,506, and the capita rank as per to the survey of 2019 is 96th.
Why has Iran always suffered such a volatile economy, one of the greatest reason is definitely because of its oil and gas exchanges? Another most common and vital reason is the immense intensity of corruption doing around in the country. As an after-effect of this widespread corruptions, there obviously prevails high unemployment of the youth, sudden inflation, public being devoid of the basic amenities, etc. Some of the other reasons can be stated to be the unwise administrative controls, random price controls as well as subsidies on food, energy and some others. And last but not the least the Contraband type of Calendar only followed by the Iranians as their own.
Apart from this, Iran also has tourism as a mode of country. The implications of the U.S. have a much harsher outbreak in the country.