The ongoing conflict between israel and iran is no longer limited to the military front. This war is now also having a huge impact on the economic backbone of both the countries. israel is suffering a direct loss of billions of dollars every day, while Iran's already stressed economy has come under more stress.
On what things does the economy of israel and iran depend?
The economy of israel is mainly based on high technology industry. Research centers of more than 400 multinational companies from around the world like Google, Intel and microsoft are located in Israel. Apart from this, diamond cutting and polishing industry contributes a lot to Israeli exports. With the help of greenhouse technology, a large export of agriculture and flowers also takes place from here.
On the other hand, a large part of Iran's economy depends on the export of oil and natural gas. According to a report by iran Front Page, it is estimated that by the end of 2025, iran will produce about 3.1 million barrels of oil per day, out of which 1.6 million barrels will be exported. Apart from this, Iran's agriculture and manufacturing sectors also play an important role in revenue, although their impact is not as widespread as oil.
The thing to understand here is that due to many sanctions imposed on Iran by the US and Europe, it is able to export most of its oil and gas to china only. In 2023, iran sent an average of 1.1 million barrels of oil per day (bpd) to China.
Who is stronger in comparison to the economic situation?
On the basis of GDP, Israel's economy has reached $ 583 billion, while according to the IMF report, Iran's GDP is around $ 463 billion in 2025. However, this estimate is before the war started with Israel. While Israel's inflation rate is close to 3 percent, in Iran it has reached 29.5 percent.
The most interesting thing is that while israel has a heavy burden of foreign debt, which is about 105 percent of GDP, Iran's foreign debt is only 1.8 percent of GDP, which is considered to be one of the lowest ratios in the region.
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