Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling monarchy was overthrown and Shah Mohammad Reza PAHLAVI was forced into exile. Conservative clerical forces established a theocratic system of government with ultimate political authority vested in a learned religious scholar referred to commonly as the Supreme Leader who, according to the constitution, is accountable only to the Assembly of Experts.

US-Iranian relations have been strained since a group of Iranian students seized the US Embassy in Tehran on 4 November 1979 and held it until 20 January 1981. During 1980-88, Iran fought a bloody, indecisive war with Iraq that eventually expanded into the Persian Gulf and led to clashes between US Navy and Iranian military forces between 1987 and 1988.

Iran has been designated a state sponsor of terrorism for its activities in Lebanon and elsewhere in the world and remains subject to US, UN, and EU economic sanctions and export controls because of its continued involvement in terrorism and its nuclear weapons ambitions. Following the election of reformer Hojjat ol-Eslam Mohammad KHATAMI as president in 1997 and similarly a reformer Majles (parliament) in 2000, a campaign to foster political reform in response to popular dissatisfaction was initiated.

The movement floundered as conservative politicians, through the control of unelected institutions, prevented reform measures from being enacted and increased repressive measures. Starting with nationwide municipal elections in 2003 and continuing through Majles elections in 2004, conservatives reestablished control over Iran's elected government institutions, which culminated with the August 2005 inauguration of hardliner Mahmud AHMADI-NEJAD as president.

The UN Security Council has passed a number of resolutions (1696 in July 2006, 1737 in December 2006, 1747 in March 2007, 1803 in March 2008, and 1835 in September 2008) calling for Iran to suspend its uranium enrichment and reprocessing activities and comply with its IAEA obligations and responsibilities. Resolutions 1737, 1477, and 1803 subject a number of Iranian individuals and entities involved in Iran's nuclear and ballistic missile programs to sanctions.

Additionally, several Iranian entities are subject to US sanctions under Executive Order 13382 designations for proliferation activities and EO 13224 designations for support of terrorism. Source: CIA World Fact Book

Population: 66,429,284 (July 2009 est.)

---

Age structure: 0-14 years: 21.7% (male 7,394,841/female 7,022,076) 15-64 years: 72.9% (male 24,501,544/female 23,914,172) 65 years and over: 5.4% (male 1,725,828/female 1,870,823) (2009 est.)

---

Median age: total: 27 years male: 26.8 years female: 27.2 years (2008 est.)

---

Population growth rate: 0.883% (2009 est.)

---

Birth rate: 16.89 births/1,000 population (2008 est.)

---

Death rate: 5.69 deaths/1,000 population (2008 est.)

---

Net migration rate: -2.62 migrant(s)/1,000 population (2009 est.)

---

Urbanization: urban population: 68% of total population (2008) rate of urbanization: 2.1% annual rate of change (2005-2010)

---

Sex ratio: at birth: 1.05 male(s)/female under 15 years: 1.05 male(s)/female 15-64 years: 1.02 male(s)/female 65 years and over: 0.92 male(s)/female total population: 1.02 male(s)/female (2009 est.)

---

Infant mortality rate: total: 35.78 deaths/1,000 live births male: 35.98 deaths/1,000 live births female: 35.56 deaths/1,000 live births (2009 est.)

---

Life expectancy at birth: total population: 71.14 years male: 69.65 years female: 72.72 years (2009 est.)

---

Total fertility rate: 1.71 children born/woman (2009 est.)

---

HIV/AIDS - adult prevalence rate: 0.2% (2007 est.)

---

HIV/AIDS - people living with HIV/AIDS: 86,000 (2007 est.)

---

HIV/AIDS - deaths: 4,300 (2007 est.)

---

Major infectious diseases: degree of risk: intermediate food or waterborne diseases: bacterial diarrhea and hepatitis A vectorborne diseases: Crimean Congo hemorrhagic fever and malaria note: highly pathogenic H5N1 avian influenza has been identified in this country; it poses a negligible risk with extremely rare cases possible among US citizens who have close contact with birds (2008)

---

Nationality: noun: Iranian(s) adjective: Iranian

---

Ethnic groups: Persian 51%, Azeri 24%, Gilaki and Mazandarani 8%, Kurd 7%, Arab 3%, Lur 2%, Baloch 2%, Turkmen 2%, other 1%

---

Religions: Muslim 98% (Shia 89%, Sunni 9%), other (includes Zoroastrian, Jewish, Christian, and Baha'i) 2%

---

Languages: Persian and Persian dialects 58%, Turkic and Turkic dialects 26%, Kurdish 9%, Luri 2%, Balochi 1%, Arabic 1%, Turkish 1%, other 2%

---

Literacy: definition: age 15 and over can read and write total population: 77% male: 83.5% female: 70.4% (2002 est.)

---

School life expectancy (primary to tertiary education): total: 13 years male: 13 years female: 13 years (2005)

---

Education expenditures: 5.1% of GDP (2006)

Iran's economy is marked by an inefficient state sector, reliance on the oil sector, which provides the majority of government revenues, and statist policies, which create major distortions throughout the system. Most economic activity is controlled by the state. Private sector activity is typically limited to small-scale workshops, farming, and services. Price controls, subsidies, and other rigidities weigh down the economy, undermining the potential for private-sector-led growth. Significant informal market activity flourishes.

Corruption and shortages of goods are widespread. President Mahmud AHMADI-NEJAD has proposed reforms to Iran's system of price controls and subsidies, particularly on food and energy. However, previous government-led efforts at reform - such as fuel rationing in July 2007 and the imposition of the Value-Added Tax (VAT) in October 2008 - were met with stiff resistance and violent protests.

High oil prices in recent years allowed Iran to greatly increase its export earnings and amass over $70 billion in foreign exchange reserves. But with oil prices currently below $40 per barrel, the Iranian government is facing difficulties. Tehran has formulated a 2009 budget that anticipates lower oil prices. The government has drawn down the country's Oil Stabilization Fund, and may be dipping into foreign exchange reserves.

Iran continues to suffer from double-digit unemployment and inflation - inflation climbed to 26% as of June 2008. Underemployment among Iran's educated youth has convinced many to seek jobs overseas, resulting in a significant "brain drain."

---

GDP (purchasing power parity): $859.7 billion (2008 est.)

---

GDP (official exchange rate): $382.3 billion (2008 est.)

---

GDP - real growth rate: 6.4% (2008 est.)

---

GDP - per capita (PPP): $13,100 (2008 est.)

---

GDP - composition by sector: agriculture: 10.8% industry: 44.3% services: 44.9% (2008 est.)

---

Labor force: 24.35 million note: shortage of skilled labor (2008 est.)

---

Labor force - by occupation: agriculture: 25% industry: 31% services: 45% (June 2007)

---

Unemployment rate: 12.5% according to the Iranian government (2008 est.) Household income or consumption by percentage share: lowest 10%: 2% highest 10%: 33.7% (1998)

---

Distribution of family income - Gini index: 44.5 (2006)

---

Investment (gross fixed): 27.7% of GDP (2008 est.)

---

Budget: revenues: $51 billion expenditures: $103 billion (FY09/10 est.) Public debt: 25% of GDP (2008 est.)

---

Inflation rate (consumer prices): 28% note: official Iranian estimate (2008 est.)

---

Commercial bank prime lending rate: 12% (31 December 2007)

---

Stock of money: $46.13 billion (31 December 2007)

---

Stock of quasi money: $68.71 billion (31 December 2007)

---

Stock of domestic credit: $109.7 billion (31 December 2007)

---

Market value of publicly traded shares: $45.57 billion (31 December 2007)

---

Agriculture - products: wheat, rice, other grains, sugar beets, sugar cane, fruits, nuts, cotton; dairy products, wool; caviar

---

Industries: petroleum, petrochemicals, fertilizers, caustic soda, textiles, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), ferrous and non-ferrous metal fabrication, armaments

---

Industrial production growth rate: 4.5% excluding oil (2008 est.)

---

Electricity - production: 193 billion kWh (2006 est.)

---

Electricity - consumption: 145 billion kWh (2006 est.)

---

Electricity - exports: 2.775 billion kWh (2006 est.)

---

Electricity - imports: 2.54 billion kWh (2006 est.)

---

Oil - production: 4.7 million bbl/day (2007 est.)

---

Oil - consumption: 1.6 million bbl/day (2007 est.)

---

Oil - exports: 2.8 million bbl/day (2007 est.)

---

Oil - imports: 210,000 bbl/day (2007)

---

Oil - proved reserves: 138.4 billion bbl based on Iranian claims (1 January 2008 est.)

---

Natural gas - production: 111.9 billion cu m (2007 est.)

---

Natural gas - consumption: 111.8 billion cu m (2007 est.)

---

Natural gas - exports: 6.2 billion cu m (2007 est.)

---

Natural gas - imports: 6.1 billion cu m (2007 est.)

---

Natural gas - proved reserves: 26.85 trillion cu m (1 January 2008 est.)

---

Current account balance: $27.47 billion (2008 est.)

---

Exports: $106.4 billion f.o.b. (2008 est.)

---

Exports - commodities: petroleum 80%, chemical and petrochemical products, fruits and nuts, carpets

---

Exports - partners: China 15%, Japan 14.3%, Turkey 7.4%, South Korea 7.3%, Italy 6.4% (2007)

---

Imports: $67.79 billion f.o.b. (2008 est.)

---

Imports - commodities: industrial raw materials and intermediate goods, capital goods, foodstuffs and other consumer goods, technical services

---

Imports - partners: China 14.2%, Germany 9.6%, UAE 9.1%, South Korea 6.3%, Russia 5.7%, Italy 5% (2007) Reserves of foreign exchange and gold: $96.56 billion (31 December 2008 est.)

---

Debt - external: $21.77 billion (31 December 2008 est.)

---

Stock of direct foreign investment - at home: $6.954 billion (2008 est.)

---

Stock of direct foreign investment - abroad: $993 million (2008 est.)

---

Exchange rates: Iranian rials (IRR) per US dollar - 9,142.8 (2008 est.), 9,407.5 (2007), 9,227.1 (2006), 8,964 (2005), 8,614 (2004) note: Iran has been using a managed floating exchange rate regime since unifying multiple exchange rates in March 2002