20.3% growth in Iran’s oil sector

17 June 2024 7:20 PM

WANA News

WANA (June 17) — 20.3% growth of the oil sector of Iran in 2023 – 2024. Over the past year, the oil sector has seen a remarkable growth of 20.3%. This growth can be attributed to a combination of factors, including increased production, favorable global oil prices, and successful export strategies. As a result, the sector has substantially contributed to the increase in the gross domestic product and the expansion of Iran’s economy.

Under the 13th government, Iran’s economic growth trajectory has been consistently upward, with a significant portion of this growth attributed to the robust production and export of oil. This steady performance of the oil sector, leading to substantial income generation and considerable wealth creation, is a testament to its stability and potential, instilling confidence in its future prospects.

According to the recent statistical calculation of Iran’s financial accounts, the previous year’s economic growth was 5.7%, including oil, and 3.4% without oil. Based on this, the activities of the industries and mines group grew by 6.9%, the service group by 5.7%, and the agricultural group by 2.2% compared to 2021 – 2022.

Economic growth in the fourth quarter of last year was 2.9%, including oil, and 0.9% without oil. Also, compared to the fourth quarter of 2021 – 2022, the industries and mines group’s field of activities grew by 4.9%, the services group by 1.5%, and the agriculture group by 0.6%.

The key highlight is the pivotal role of the increase in Iran’s oil production and export in the country’s economic growth in 2022 – 2023. In the winter of last year, 16.2% of the country’s gross domestic product was realized from oil production and export, the highest share among different economic sectors. This underscores the direct and significant impact of the oil sector on Iran’s economy.

The oil sector played the most significant role in Iran’s economic growth last year. Iran’s economic growth in 2022 – 2023, excluding oil, was 3.4%, while the growth of Iran’s economy, including oil, was 5.7%.

The economic growth statistics from 2022 to 2023 indicate the dimensions of oil’s role in economic growth. Iran’s economy in 2021 – 2022 was declared to be 5.1% with oil and 4.8% without oil.

WANA – Growth percentage of GDP and added value of activities in 2022-2023

A simple calculation reveals that although Iran’s economic growth of Iran (2022 – 2023) excluding oil has experienced a 41% drop, this economic factor, considering the share of oil in it, shows an increase of 12%.

In fact, “Oil” has increased production and exports to compensate for about 53% of the drop in Iran’s economic growth in 2022 – 2023.

Also, while the country’s economic growth last year increased by more than 12% compared to 1401, the oil sector’s growth in 2022 – 2023 was more than 207% compared to the previous year.

WANA – The growth of the oil sector from 2021 to 2023

On the other hand, the economic growth of the oil sector was 3.5 times compared to the country’s economic growth last year.

These cases show that Iran’s oil industry has been the country’s record holder in economic growth in the past year. It has not only achieved its main tasks in providing the country’s budget and economy but has also borne the decline in development in other sectors and compensated for it.