Investments are declining chiefly due to the unpredictability of Iran’s business environment.
The growth rate of investment or gross fixed capital formation in the Iranian economy has been negative over the past decade and the situation is going from bad to worse by the year, such that by the Iranian year ending March 2020, the level of investment was outdone by depreciation of accumulated capital.
The share of investment in relation to the total gross domestic product, which was 30% in the 1980s, declined to 18% in the year ending March 2020 and 15% in the year ending March 2021, according to a report by Persian monthly Ayandehnegar published by Tehran Chamber of Commerce, Industries, Mines and Agriculture.
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