Energy Supply Cuts Plunge Economy to ‘Rare’ Slump

The PMI for Iran’s overall economy settled at 41.89 in the tenth month of the year from 49.14 registered in the previous month, indicating a 7.25-point or 14.75% decrease.

New data released by the Statistics and Economic Analysis Center of Iran Chamber of Commerce, Industries, Mines and Agriculture show the Purchasing Managers' Index for Iran’s overall economy saw a “massive crash” in the tenth month of the current Iranian year (Dec. 22, 2022-January 20, 2023).

The report attributes the downturn in economic performance to long-standing factors plaguing the Iranian economy, such as runaway inflation, plummeting value of the national currency and ever-dwindling demand in the market in addition to a new challenge, namely “shortage of energy”.

The PMI for Iran’s overall economy settled at 41.89 in the tenth month of the year from 49.14 registered in the previous month, indicating a 7.25-point or 14.75% decrease.