5 Fastest Declining Economies in the World in 2026

​3. Iran

5-Year Average Real GDP Growth Rate: 1.16%

Real GDP Growth Rate 2026: -6.1%

​Iran is a large country in Western Asia. The economy is a large, state‑influenced, mixed system where services account for about half of GDP, followed by oil and gas, manufacturing, construction, and agriculture.

​The country has been challenged with severe sanctions, war disruptions, and intensifying domestic economic crises. Its currency has also been experiencing extreme depreciation and volatility.

​The IMF expects the Real GDP growth rate to be negative 6.1% in 2026, mainly due to the impact of war and ongoing international sanctions.