Iran’s economy shrinks 10.1% amid war with US, Israel

Iran’s economy contracted 10. 1 per cent year-on-year in the quarter to late June, official data showed, as the conflict with the United States and Israel disrupted oil production, industry and wider economic activity. The contraction was recorded during the first quarter of the Persian calendar, which ran from March 21 to June 20 and largely overlapped with the conflict that began with US and Israeli strikes on Iran on February 28. According to the Statistical Centre of Iran, gross domestic product (GDP) fell 10. 1 per cent when oil was included, while the economy contracted 4. 6 per cent excluding the oil sector. The sharpest decline was recorded in oil and gas extraction, with activity in the crude oil and natural gas sector falling 26. 4 per cent from a year earlier. The industries and mining sector contracted 14. 7 per cent, while services, another major component of the economy, declined 4. 8 per cent during the quarter. Agriculture was the only major sector to register growth, expanding 2. 3 per cent year-on-year. The Statistical Centre reported the figures without explicitly attributing the contraction to the war. However, the period covered by the data coincided with the early months of the conflict, which disrupted Iran’s energy sector, trade and transport.

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