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Non-oil exports rose by two per cent 1998 from a year
earlier.
The public came to
understand the significance in the rise of non-oil exports only in 1998.
By 1998, industrial
products snatched the lead in non-oil exports, by accounting for 85 per cent of their
weight and 51.5 per cent of their value.
Every ton of minerals was traded
at 71.3 dollars in 1998, up by 1.3 per cent compared with the previous year.
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In
1998, the nation exported 11.3 million tonnes of non-oil products worth 2.924 billion
dollars, said a report from the Customs Department. Although the figure posts a 36.6 per
cent increase in weight from the previous year, its value has dropped by 2.5 per cent.
According to a survey, in 1997, around 8.3 million tonnes of goods, worth 2,999.5 million
dollars were exported, up by 2.87 per cent year on year. Meanwhile, 989.9 thousand tonnes
of goods valued at 227 million dollars were exported in March 1999, up by 87.4 per cent in
weight, and 21.08 per cent in value compared with the same period in the previous year.
Regarding the non-oil exports of Iran, it can be said that:
- 1998 displayed a severe imbalance in the weight, and the
value of non-oil exports compared to the previous year;
- During the first half of 1998, exports posted a negative
record, whereas in the second half, they registered a positive trend compared to the same
periods in the previous year;
- Iran held a scant share of global exports.
Expansion of non-oil exports,reduces foreign currency needs
A. Fluctuations in the Weight and Value of Non-Oil Exports
During 1998, Iran's non-oil exports grew by 36.6 per cent in weight but slipped by 2.5 per
cent in value. Supposing a freeze in the type of non-oil exports during 1997 and 1998, one
can calculate the average price of the dollar per ton of export-bound shipments and
compare the two years with one another.
According to a survey, one ton of non-oil consignments sold for 259 dollars in 1998, was
down by 28.6 per cent from 362.8 dollars in 1997. Thus, the sharp imbalance in the weight
and value of non-oil exports in 1998 against that of 1376 1997 is attributable to a 28.6
per cent drop in the value of a tonne of export shipments.
B. Exports Substitute Slump with Increase
Experience shows that the supportive policies of the government, serve to leave a belated
impact on non-oil exports.
It seems that the U-turn in the growth of non-oil exports from a previously lingering
slump between October 1998 to March 1999, stems from the encouraging policies of the
export promotion centres, set in place in the initial months of the Iranian solar calendar
year.
Assisted by a 3.6-per cent increase in the amount of non-oil exports, the sector met the
target performance set for 1998. In other words, non-oil exports registered a successful
trend, and the exports exceeded far beyond the previous years.
Chemical products have been the most important
industrial export of the country
C. Iran's Scant Share of
Global Exports
Increasing public awareness, and the worsening of the economy triggered by the sagging oil
prices, turned 1998 into a watershed of events in Iran's history.
The financial hardships strengthened the people's will to address non-oil exports as a
trop-priority, capable of fetching large amounts of hard currency, stimulating the
economy, and creating jobs for the youths.
Several elements contributed to the failure in the attempts to lift the rock-bottom
non-oil exports over the past few years. Chief among them include: development losses
resulting from the Iraqi-imposed war, financial obligations of the wartime era, the
economic embargo slapped on the developing bloc, loose investment attempts in non-oil
exports, and a robust consumer demand against a stagnant national output.
Meanwhile, financial pressures caused by an attempt to stabilise the foreign exchange
rate, lack of a clear strategy for the fulfilment of monetary and financial policies,
ineffectual export provisions, and unstable regulations, all contributed to the hampered
growth of non-oil exports.
Performance
Iran's non-oil exports fall into four major categories, namely agricultural products,
industrial goods, minerals, and hand-woven carpets and handicrafts.
A review of non-oil exports in 1998 indicates that industrial goods took the lion's share
by holding 85 per cent of the weight, and 51.5 per cent of the value of non-oil exports,
up by 41 per cent and 15.2 per cent from the previous year.
During the same period however, mineral exports held a meagre 5.4 per cent of the weight,
and 1.5 per cent of the value of non-oil exports.
A comparison between the non-oil exports of 1997 and 1998, indicates that the dichotomy
between minerals, and hand-woven carpets and handicrafts remained unchanged during the two
years. In the meantime, agricultural products improved by 7.5 per cent.
Industrial Goods
Around 9.6 million tonnes of industrial goods worth 1,504.4 billion dollars were exported
in 1998, holding 85 per cent of the weight and 51.5 per cent of the value of non-oil
exports. Although the figure displays a 41 per cent surge in weight, it has slipped by
15.2 per cent in value, from the previous year. The average price of a tonne of industrial
exports fell to 156.7 dollars in 1998, down by 40 per cent from 260.5 dollars a year
earlier.
Chief among the industrial exports were chemicals 14.82 per cent, gasses 4.64 per cent,
metal and steel 4.5 per cent, copper products 2.53 per cent and, benzene 1.56 per cent.
Industrial products held 63.5 per cent of the weight of the country's total exports and
74.5 per cent of non-oil exports in fiscal 1998. They also held 27.9 per cent of the value
of the country's total exports and 54.1 per cent of non-oil exports.
Agricultural Products
In 1998, the country exported 1,057 thousand tonnes of agricultural products worth 776.8
million dollars, up by 23.6 per cent in weight, and 40 per cent in value against the
previous year.
The average price of a tonne of agricultural product hovered around 735 dollars 1998, up
by 13.4 per cent from 735 dollars a year before.
Apart from pistachio or pistachio nuts, which grabbed 13.5 per cent of the total non-oil
exports, other components of agricultural exports included hide and skin at 15.1 per cent,
caviar at 1.34 per cent, and mammal guts at 1.06 per cent.
Hand Woven Carpets and Handicrafts
Exports of hand-woven carpets amounted to 26.5 tonnes in 1998, down by one per cent
compared to the previous year. In the same period, handicraft exports fell by five per
cent to reach 599.1 million dollars.
A tonne of carpets and handicrafts fetched an average 2,3609 dollars in 1998, down by 3.9
per cent against a year earlier. Taking the lion's share of the group, hand woven carpets
accounted for 94.2 per cent of the group's exports, and 19.31 per cent of the country's
total exports.
In 1998, Iran's hand-woven carpet exports fell by 6.4 per cent in weight and 4.9 per cent
in value, to reach 21.27 thousand tonnes and 564.6 million dollars, respectively.
Minerals
About 610.4 thousand tonnes or 43.5 million dollars of mineral shipments were exported in
1998, up by six per cent in weight and 6.4 per cent in value compared to the previous
year. Meanwhile, minerals occupied 5.4 per cent of non-oil exports and 1.5 per cent of the
country's total exports. Every tonne of minerals was traded at an average of 71.3 dollars,
up by 1.3 dollars on every tonne from the previous year.
The main export items of the group included zinc ore and concentrates at 44 per cent,
molybdenum ore and concentrates at 34 per cent, construction stones at 24 per cent,
clinker at one per cent, and salt (mineral and marine) at 9 per cent. The combination
accounted for 77 per cent of the group's exports, comprising 1.21 per cent of overall
non-oil exports.
Imports
In 1998, the country imported around 14.9 million tonnes or 14.5 billion dollars of
consumer, intermediary and capital goods, down by 26 per cent in weight, and nine per cent
in value from a year earlier.
Meanwhile, a tonne of minerals was traded on average at 973.1 dollars in1998, up by 159
dollars from 714 dollars year on year. The leading imported items in 1998 were
respectively as follows: mechanical equipment and machinery 3,335.5 million dollars,
electrical industrial equipment 1,426 million dollars, metal and steel 984.8 million
dollars, edible oil 585.4 million dollars, PVC raw materials 538.9 million dollars, wheat
339.6 million dollars, and chemical products 336.2 million dollars. These items accounted
for 52 per cent of the total value of imports in 1998. |
