The Illusion of Production Without Investment

The decline in Iran’s GDP and per capita consumption during the 2010s should be chiefly blamed on the waning capital formation, Ali Cheshmi, an economist and university professor, said in an article for the Persian economic daily Donya-e-Eqtesad. 
A translation of the text follows:  
Production determines the level of societies’ welfare. Gross fixed capital formation, at fixed prices of fiscal 2011-12, declined to 2,610 trillion rials [about $9.5 billion at the current exchange rate] in the fiscal 2020-21 from 5,240 trillion rials [about $19 billion] in the fiscal 2011-12. 
Capital formation in machinery and the construction sector decreased by 65% ​​and 35%, respectively. These figures are enough to explain the slide in the current and future welfare of a society.