...

Iran’s economy to grow at most by 0.5%

Business Materials 4 September 2015 11:46 (UTC +04:00)

Baku, Azerbaijan, Sept. 4

By Fatih Karimov - Trend: Iran's economy will grow at most by 0.5 percent in the current Iranian fiscal year, (March 2015-March 2016).

Tehran Chamber of Commerce Chairman Masoud Khansari said the economic growth situation is very unfavorable this year. "In the most optimistic case, the country's economic growth rate will be half a percent," ISNA news agency reported on September 4.

Recession and a fall in demand are the main causes of reduction in economic growth, he explained.

"It seems unlikely that the presence of foreign trade delegations in Iran could be effective in improvement of economic situation, considering that lifting of the sanctions will take some five months," he said.

"No foreign investment will be made in the short-term. So, we should think of making investment by the domestic private sector," he added.

Iranian parliament speaker Ali Larijani said on June 12 that the international sanctions are effective on the national economic problems just 20 to 30 percent.

The remainder is pertinent to our internal problems, he added.

The International Monetary Fund (IMF) forecast a 0.6 percent gross domestic product (GDP) growth for Iran in 2015 in its April World Economic Outlook.

The IMF report put Iran's GDP growth at 3 percent in 2014, while predicting a 1.3 percent GDP growth for the country in 2016.

A final agreement was reached on Iran's disputed nuclear program in the Austrian city of Vienna on July 14 after some 22 months of talks between Iran and the P5+1 (five permanent members of the UN Security Council plus Germany).

Edited by CN

Latest

Latest