Unlocking Mystery of Industrial Recession

EghtesadOnline: Why did Iran’s economy fail to achieve growth over the past decade? This question should be posed to the industrial sector, the main driver of growth.

News ID: ۷۵۲۱۱۱

18 December 2022

This was stated by Farshad Fatemi, an economist, in an article for the Persian economic daily Donya-e-Eqtesad. A translation of the text follows:

To understand the importance of the industrial sector in creating economic growth, we need to know that first, the agriculture sector used to register limited and inconsistent growth even when water shortage was not a critical problem. Second, when it comes to achieving growth, the services sector mainly toed the industrial sector. In addition, sub-sectors of services, including hospitality or tourism, have not been able to generial sector can be blamed on various factors.

Today, industries are more interdependent than ever. In recent years, especially after the arrival of Donald Trump in the White House, certain commercial policies were introduced; besides the UK’s exit from the European Union slowed down and at times reversed the globalization process. But we need to bear in mind that most of the world’s industries are interdependent.