Growth in oil production and exports despite economic recession

According to Energy Press reports, the Central Bank has announced the economic growth rate for the first half of this year in its statistical data.

Based on the Central Bank’s report, according to initial estimates, the country’s gross domestic product (GDP) at prices and in the base year 1400 decreased from 40,283.9 thousand billion r in the first half of 1403 to 40,02.1 thousand billion rials in first half of 1404 indicating a negative GDP growth rate of0.6% during this period.

Considering the overall economic situation seasonal calculations show that Iran’s economy the first half of 1404, compared to the same period last, has faced a decrease in economic growth and recession, but in these conditions the oil sector in Iran has seen 1.1% growth. Growth that, in addition to providing a large of Iran’s required foreign exchange resources the face of sanctions, economic war, and even the 12-day war, has also compensated for part of negative growth of other sectors.

Estimates of the added value of economic activities in the first half of 1404 show that the main reason for the decrease in the GDP growth rate should be sought in the decline in the added value of industries, construction, and agriculture, forestry, and fishing. In such a way that the contribution of the added value of each of these activities to the negative 0.6% GDP growth rate in the first half of 1404 is estimated at -0.7%, -0.6%, and -0.4%, respectively.

In the first half of 1404, the added value of the agricultural group at constant prices in 1400 was estimated at 5,562.5 thousand billion rials, a decrease of 2.9% compared to the same period last year.

Estimates in this area have been made based on basic statistics received from the Ministry of Jihad Agriculture regarding the production of agricultural, horticultural, livestock, and fisheries products. The decrease in the production of crops such as wheat, barley, pistachios, and dates is among the most important factors in the decline of the growth rate of the agricultural group’s added value in the first half of this year.