suhaizam

Squeezing Iran: Oil and sanctions

In Ekonomi / Economy, Iran, Politik / Politic, World on January 25, 2011 at 7:19 pm

Since the Islamic revolution in 1979 Iran’s relations with the West have been rocky.

GDP: Iran’s five-year economic development plans for 2000-2015 set a target of 8% growth for the country’s gross domestic production (GDP), but except for few years in this period, Iran’s economy has largely under-performed. It took a sharp fall in 2008 as a result of plummeting oil prices which followed global financial meltdown. Oil and gas exports constitute some 60% of Iran’s revenues.

Oil Production: While showing a slow but steady increase in the past 30 years, Iran’s oil production started to decline since 2005 due to lack of investment in developing current and new oil and gas fields. Iran’s complicated buy-back scheme and the country’s political situation have put off international oil companies from working with a country that sits on world’s fourth largest oil reserves.

Foreign investment: Iran’s official statistics for foreign direct investment have in the past few years been contradictory. Some official figures include memoranda of understanding which were never signed into contracts. But all statistics show a decline in foreign investment since President Mahmoud Ahmadinejad took office in 2005. Unlike his reformist predecessor Mohammad Khatami who encouraged foreign investment, Mr Ahmadinejad’s defiant policies have discouraged foreigners from investing in Iran.

Source: http://www.bbc.co.uk/news/world-middle-east-10727616

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