The economy of Iran is the twenty-fifth largest in the world by GDP (nominal) and the eighteenth largest economy in the world by purchasing power parity (PPP). Iran's economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures. Its economic infrastructure has been improving steadily over the past two decades but continues to be affected by inflation and unemployment. In the early 21st century the service sector contributed the largest percentage of the GDP, followed by industry (mining and manufacturing) and agriculture. In 2006, about 45% of the government's budget came from oil and natural gas revenues, and 31% came from taxes and fees.
Government spending contributed to an average annual inflation rate of 14% in the period 2000–2004. As at 2007, Iran had earned $70 billion in foreign exchange reserves mostly (80%) from crude oil exports. In 2011 GDP was $482.4 billion ($1.003 trillion at PPP), or $13,200 at PPP per capita, signifying a 2% growth in GDP. Because of these figures and the country’s diversified but small industrial base, the United Nations classifies Iran's economy as semi-developed (1998).
About 1,659,000 foreign tourists visited Iran in 2004; most came from Asian countries, including the republics of Central Asia, while a small share came from the countries of the European Union and North America. Iran currently ranks 89th in tourist income, but is rated among the "10 most touristic countries" in the world in terms of its history. Weak advertising, unstable regional conditions, a poor public image in some parts of the world, and absence of efficient planning schemes in the tourism sector have all hindered the growth of tourism.
The administration continues to follow the market reform plans of the previous one and indicated that it will diversify Iran's oil-reliant economy. Iran has also developed a biotechnology,
