Iran's economic growth reached negative 10 percent in spring 1405. According to the latest results of seasonal national accounts, the gross domestic product (GDP) at constant prices of 1400 reached 21,795 trillion rials with oil and 17,226 trillion rials without considering oil in the first quarter of this year.
Severe Decline in Oil and Gas Sector
While the figure in the first quarter of last year was 24,255 trillion rials with oil and 18,049 trillion rials without oil, this indicates a negative growth of 10.1 percent in GDP with oil and 4.6 percent without oil compared to the first quarter of 1404. Therefore, an examination of the report from the Statistical Center of Iran shows that the gross domestic product in the "oil and natural gas extraction" sector in spring 1405 decreased by 26.4 percent compared to the same season last year.
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Economic Consequences of War and Declining Oil Revenues
The decline in oil revenues in the oil and gas sector has significantly caused Iran's economic growth to turn negative this spring. Iran's economic growth without oil reached negative 4.6 percent this spring, and with oil, it decreased to negative 10.1 percent. This situation reflects the profound effects of sanctions and maritime blockade on the country's economy.
According to statistics, only the agricultural sector has been exempt from negative growth during this period, with the gross domestic product of the agricultural sector reaching 2.3 percent this spring. In contrast, the services sector faced a 4.8 percent decline, which includes various sub-sectors such as wholesale and retail, food and accommodation services, transportation, and warehousing.
Overall, these statistics indicate the critical economic situation in Iran and the consequences of the imposed war on people's lives. Issues such as rampant inflation and declining purchasing power are clearly observable, and this situation may have further social and political repercussions.
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