Iran vs. Israel. Economic growth in the 21st century
Maddison project database (MPD) is a famous source of real GDP data for the whole world. Let’s compare real GDP per capita for Iran, Israel, and Russia in 2022 as presented by the MPD (2023 version). Figure 1 presents the evolution of 3 curves and definitely shows the overall dominance of Israel with $36,649 in 2022. Iran had $18,473 and Russia $25,437.
The most recent period of relatively free development, say the 21st century, in all studied countries can be best presented by the cumulative growth of real GDP per capita. Instead of presenting just the difference in the levels between 2022 and 2000, we show in Figure 2 the cumulative growth well illustrating the economic events in the 21st century. Overall, Russia has been showing the highest growth in GDP per capita, i.e. the most efficient economic growth. Iran, despite millions of sanctions, and Israel show similar figures. In 2023, the economic growth in Israel effectively stopped and the estimates for this year shown be negative. Moody’s shifted Israel rating to Ba1 with negative expectations. The 21st century was not too much successful for Israel and Iran.
Figure 2. Cumulative growth in real GDP pc since 2000.
Russia leads so far in the personal income growth in the 21st century – $16,000 is added in each pocket to buy and to save.
Source: http://mechonomic.blogspot.com/2024/10/iran-vs-israel-economic-growth-in-21st.html
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