The head of the Trade Development Organization states that the dollar value of non-oil exports in the year 1396 (2017-2018) reached approximately 47 billion dollars, showing an increase of about 6.5 percent compared to the previous year. According to a report on Wednesday, April 4, 2018, by the IRNA news agency, Mojtaba Khosrotaj added that an analysis of industrial and mineral exports (excluding gas condensates and petrochemicals) indicates an increase of nearly 22 percent. Although Iran's non-oil exports have increased, according to government planning reflected on the Trade Development Organization's website, the non-oil export goals for the last solar year were projected at 53 billion dollars. In other words, Iran fell short of its non-oil export program by six billion dollars. Iran includes some oil items in its non-oil export basket, such as gas condensates, which are a type of ultra-light crude oil, propane and butane, which are raw gases, or bitumen included in the non-oil export list. These oil items constitute a significant share of what Iran calls non-oil exports. Last week, the International Monetary Fund estimated the total exports of the country, including oil and non-oil, as well as services, for the last solar year at 109.5 billion dollars. According to a report published last Thursday on the official website of this international organization, the total exports of Iran increased by about 16 percent compared to the previous year, mainly due to a significant increase in oil prices. Of this amount, 63.7 billion dollars was related to crude oil, gas condensates, petroleum products, and natural gas, which saw an increase of nearly 14 billion dollars compared to the previous year. According to the IMF's estimates, Iran's total imports (including services) also grew by more than 15 percent during the year 1396 compared to the previous year, reaching 91.5 billion dollars. Thus, Iran's trade balance last year was positive at 18 billion dollars. The report predicts that Iran's exports this year will reach 130.3 billion dollars and the country's trade balance will also be positive at 27 billion dollars. The main reason for the increase in exports and improvement in the trade balance is attributed to the increase in the price and volume of Iran's oil and gas condensate exports, suggesting that revenues from oil and gas exports may increase by 15 billion dollars. It is expected that Iran's oil and gas condensate exports will increase by 200,000 barrels per day, reaching 2.7 million barrels per day.
Iran Falls Behind by Six Billion Dollars in Non-Oil Export Goals
Iran's non-oil exports reached 47 billion dollars in 2017-2018, falling short of the government's target of 53 billion dollars by six billion. The increase in exports is primarily attributed to rising oil prices, with total exports estimated at 109.5 billion dollars. This situation highlights the challenges Iran faces in diversifying its economy away from oil dependency.
👥 Key Players
📰 What Happened
Iran's non-oil exports reached 47 billion dollars in the 2017-2018 fiscal year, falling short of the government's target of 53 billion dollars by six billion. While total exports increased due to rising oil prices, the shortfall in non-oil exports highlights ongoing economic challenges.
- Non-oil exports increased by 6.5% compared to the previous year.
- Total exports, including oil, were estimated at 109.5 billion dollars.
💡 Why It Matters
📚 Background
Iran's economy has historically been dependent on oil exports, making diversification a critical goal for sustainable growth. The country has faced various sanctions that complicate its trade dynamics.
🏷️ Entities Mentioned
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