Archive · 16 Aug 2026
Iran's economy stabilises after war shock, growth remains elusive
Iran's economy got hurt by a war, and now it is starting to feel a little better, but it is not fully healthy yet.
A special number called the PMI helps us understand how businesses are doing.
If the number is above 50, businesses are growing.
If it is below 50, businesses are shrinking.
Iran's overall number was 45.9, which means businesses are still shrinking, but not as fast as before.
Factories had a number of 48.2, which also means they are not growing yet.
A man named Samad Hassanzadeh, who leads the country's chamber of commerce, said things are improving a little.
He said businesses and the government are working hard to keep things going.
But Iran still has problems, like not earning enough money from oil and some factories being damaged.
To really get better, Iran needs to trade with other countries and get more investment.
So the economy is getting more stable, but it has not started growing again yet.
Iran's economy shows early signs of stabilisation after the war-driven downturn, but activity remains in contraction territory.
The overall economy PMI stood at 45.9 in Khordad (late May to late June), below the 50-point expansion threshold.
The industrial-sector PMI was 48.2, indicating manufacturing has yet to regain expansionary momentum.
Samad Hassanzadeh, head of the Iran Chamber of Commerce, Industries, Mines and Agriculture, cited a relative improvement in economic conditions.
Falling oil revenues, damaged factories and weak demand continue to weigh on recovery, with international engagement seen as key to sustained growth.
- Who
- Samad Hassanzadeh, head of the Iran Chamber of Commerce, Industries, Mines and Agriculture
- What
- Iran's economy is showing early signs of stabilisation after a war-driven downturn, but business activity remains in contraction
- When
- Latest PMI data for Khordad, roughly late May through late June; comments made on Sunday
- Where
- Iran
- Why
- Falling oil revenues, damaged factories and weak demand continue to weigh on recovery
- Overall economy PMI
- 45.9
- Industrial-sector PMI
- 48.2
- PMI expansion threshold
- 50
- Period covered
- Khordad (late May to late June)
- Key risks
- Falling oil revenues, damaged industrial infrastructure, weak demand
- Source of data
- Iran Chamber of Commerce, Industries, Mines and Agriculture