Economy, Business And Markets

Iran’s Total-Factor Productivity Near Zero

TFP increased by 0.1% while GDP saw a rise of 2.5% during 2005-17
Iran’s Total-Factor  Productivity Near ZeroIran’s Total-Factor  Productivity Near Zero

Iran’s annual total-factor productivity index during the fiscal 2005-6 to 2016-17 hovered around zero, suggesting the neutral role played by productivity in the country’s economic growth. 
This is while, according to the objectives of the fourth and fifth five-year development plans (2006-11 and 2011-16 respectively), productivity should have accounted for 31.3% and 33.3% of economic growth in those years.  
One of several types of productivity measured in the latest report by the National Iranian Productivity Organization, such as workforce productivity increased by 3.4% (using the Iranian year to March 2012 as the base year) during the Fourth Plan. 


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