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Iran needs $200B for 8% GDP growth

Business Materials 3 October 2016 16:30 (UTC +04:00)

Baku, Azerbaijan, Oct. 3

By Emil Ilgar - Trend:

Iran needs $200 billion worth of investment annually to reach an eight percent GDP growth, Parliament Speaker Ali Larijani said.

“Even, achieving a 12 percent economy growth is possible in long term with attracting more international investments , though it is very hard,” Shana news agency quoted Larijani as saying Oct.3.

Iranian Speaker said that the country increased oil (crude oil and condensate) exports to about 2.5 million barrels per day (mb/d) since January 2016, which increased the GDP growth to five percent.

During the sanctions era, started in 2012, Iran’s oil and gas condensate export decreased from 2.5 mb/d to around 1.4 mb/d.

According to the United Nations Conference on Trade and Development (UNCTAD), Iran’s annual inward FDI (foreign direct investment) was $2.408 billion on average during 2005-2007, while this figure for 2011-2014 was $3.523 billion, despite the fact that the country was under sanctions.

Iran needs about $62 billion worth of investment in the energy sector annually from 2015 to 2025, including up/mid/downstream and energy optimizing projects.

Referring to the economic reforms, Larijani also said that the smuggling level has decreased from $20 billion during last year to the current $15 billion.

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