Portal:Iran/Selected article/8

The economy of Iran is the seventeenth largest in the world by purchasing power parity (PPP) and twenty-fifth by nominal gross domestic product. The country is the world's largest non-WTO economy and a member of Next Eleven. The economy of Iran is a mixed and transition economy with a large public sector and some 50% of the economy centrally planned. It is diversifed with over 40 industries directly involved in the Tehran Stock Exchange. Yet, most of the country's exports are oil and gas, accounting for a majority of government revenue in 2010. A unique feature of Iran's economy is the presence of large religious foundations, whose combined budgets make up more than 30% of central government spending. Due to its relative isolation from the global markets, Iran was initially able to avoid falling into recession in the aftermath of the 2008 global financial crisis. However, due to increasingly stringent sanctions imposed by the international community as a result of the country's nuclear program, the economy has started to shrink in 2012. Oil exports have halved, and Iraq has overtaken Iran in oil output for the first time since the 1980s. In September 2012, the Iranian currency fell to a record low of 23,900 rials to the US dollar. Distortions resulting from a combination of price controls and subsidies, particularly on food and energy, continue to burden the economy. Contraband, administrative controls, corruption, and other restrictive factors undermine the potential for private sector-led growth. High oil prices in recent years have enabled Iran to amass well over $100 billion in foreign exchange reserves. Whilst this has aided self-sufficiency and domestic investment, double-digit unemployment and inflation remain problematic. Iran's educated population, economic inefficiency, and insufficient foreign and domestic investment have prompted an increasing number of Iranians to seek employment overseas, resulting in a significant "brain drain".