The effects of recession in the housing and construction sector on the performance of the industry and mining sectors in recent years

The housing and construction sector accounts for more than 5% of the GDP and 40% of the gross fixed capital formation in Iran. According to the input-output table, and based on the results of studying inter-sectoral links, the housing is a key sector from the point of view of demand creation. Therefore, stimulating the real demand of the housing sector leads to an increase in demand for industrial and mineral products, while the decline in activities in the sector has serious implications for demand in industrial and mining sectors, and reducing industrial and mineral activities. More than 120 industries are linked with the housing sector and its prosperity or recession has a significant impact on the performance of the industry and mining sectors. Hence, the roots of the low growth rates of many industries in the country in recent years can be found in the recession prevailing in the housing and construction sector.

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