Economy, Domestic Economy

Agriculture Poor Contributor to GDP

Agriculture Poor Contributor to GDPAgriculture Poor Contributor to GDP

Iran’s gross domestic product (GDP) grew by 4 percent in the first half of the current Iranian calendar year, which began on March 21, compared with the similar period last year, according to preliminary estimates by the Central Bank of Iran (CBI) published in their Economic Trends Summary Report.

Reviewing the expenditures during this period, the CBI’s preliminary estimates indicate that the national expenditures including private consumption expenditures, public consumption expenditures, gross fixed capital formation and the net exports and imports of goods and services grew by 3.7, 3.3, 15.8, 10.1, and 4.5 percent respectively while the gross national expenditure during this period grew by 4.2 percent compared with the similar period last year, Sedayeeghtesad reported.

The report also indicates that the agricultural sector’s ‘gross national product and income’ in the first half of the current Iranian year was 101,047 billion rial ($3.7 billion at official dollar exchange rate), showing a 3.2 percent growth compared with the similar period last year. This is while the sector had grown by 6.9 percent in the first half of the previous year compared with its preceding year. The production of ‘farming products’ and ‘horticultural products’ grew by 1.4 and 5.9 percent respectively during the mentioned period while the production of ‘livestock products’ grew by 9.1 percent.

Based on the estimations, the ‘agriculture’ sector, with 3.2 percent growth, ranked third in terms of economic growth while the ‘oil’ and the ‘manufacturing and mining’ groups ranked first and second respectively with 9.2 and 7.2 percent growth, and the ‘services’ group ranked fourth with 2.5 percent growth. Also, with only 0.3 percent contribution to GDP, the agriculture sector had the least effect on the country’s GDP.

The ‘gross national product and income’ of the agriculture sector in the first half of the current year was 741,158 billion rial (27.5 $billion), which compared with 600,533 billion rial (22.2 $billion) in the similar period last year indicates a 23.4 percent growth. The sector’s share in GDP (at basic prices) was 13.1 percent.