Investments in Iranian economy declined in past decade
The Tehran chamber of commerce in a report has said that investments in the Iranian economy have steadily declined in the past decade, reaching negative growth.
The worst declines have been from March 2019 to March 2021, as US sanctions reduced the government’s ability to invest, and the private sector was weakened by a declining economy.
In the past Iranian year ending on March 20, investments totaled $4 billion that was less than capital depreciation, leading to a 4.8 percent negative rate of investments.
As assets, such as machinery and buildings, break down or fall into disrepair capital is needed to rejuvenate infrastructure. If new investments are less than what is needed for upkeep, the result is a negative rate of investments.
In the past decade in Iran investments in machinery declined by 7.3 percent and in buildings 4 percent.
The chamber of commerce calculated that if US sanctions are lifted now, Iran would need 13 years from to return to the rate of investments it had in 2011, if it can muster a 5 percent annual economic growth rate.
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