Iran advances 41 places in industrial production

Business Materials 1 March 2010 11:28 (UTC +04:00)

From 2008 to 2009 Iran has leaped to 28th place from 69th place in annual industrial production growth rate.

The Moj news agency quoted the U.S. Fact Book site as stating that in contrast to Iran's growth, in Europe in the month of December 2009 they suffered both monthly and annual decrease in industrial production growth rate due to the global economic crisis.

Also in December 2009, compared to December 2008, industrial production in the world declined 5 percent because of the global crisis while this figure reached 9.4 percent in the European Union.

The industrial production growth rate measures changes in output for the industrial sector of the economy. The industrial sector includes manufacturing, mining, and utilities. Although these sectors contribute to only a small portion of GDP (Gross Domestic Product), they are highly sensitive to interest rates and consumer demand. This makes Industrial Production an important tool for forecasting future GDP and economic performance. Industrial Production figures are also used by central banks to measure inflation, as high levels of industrial production can lead to uncontrolled levels of consumption and rapid inflation.