Iran's economic growth reached negative 10.1% in spring 2026, marking an unprecedented figure since the Islamic Revolution. The Statistical Center of Iran published this data in its reports on the country's economic growth. This deep recession indicates a severe decline in economic activity and production compared to last year.
Factors Influencing Negative Growth
A negative economic growth rate means that the volume of production and economic income in the country has significantly decreased. In spring 2025, the gross domestic product was equivalent to 24,255 trillion rials, which has decreased to 21,795 trillion rials this spring. The most important factor behind this massive recession is the sharp decline in oil revenues. Excluding oil from the gross domestic product calculations, the non-oil economic growth rate has dropped to negative 4.6%.
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Details of the Recession in Various Sectors
Investigations by the Statistical Center show that the oil and natural gas extraction sector recorded the highest decline among economic groups, with a negative growth of 26.4%. Other sectors have not been spared from this recession; the growth of industries and mines, including oil, has reached negative 14.7%, and without oil, it has dropped to negative 5.2%. In contrast, only the agricultural sector has distinguished itself with a positive growth of 2.3% this spring.
The services sector also recorded a negative growth of 4.8%, indicating the country's unfavorable economic situation. Among them, only two subgroups, financial intermediation and other public, social, and personal services, managed to escape negative growth. While financial intermediation recorded over 8% economic growth last year, this figure has decreased to 2% this spring.
The continued negative growth of gross fixed capital formation is another significant point in the Statistical Center's report. This indicator, which reflects the trend of investment and productive capacity in the economy, has reached negative 8.4% this spring. This decline signifies ongoing pressure on the investment trend and the lack of new productive capacities in the country.
Ultimately, statistics and reports indicate that exports of goods and services have also faced a severe decline, with growth dropping to negative 35.7% this spring. Meanwhile, imports of goods and services have experienced a similar decline, recording a negative growth of 14.8%.
Overall, Iran's economic growth in spring 2026 has been influenced by various factors. The general economic conditions, the level of business activity, and the ability to produce and exchange are significantly affected by sanctions and the economic situation. This deep recession reflects the major challenges facing Iran's economy, which requires urgent attention and action.
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