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World Bank forecasts 5.2% economic growth for Iran in 2017

Business Materials 11 January 2017 14:27 (UTC +04:00)

Baku, Azerbaijan, Jan. 11

By Khalid Kazimov – Trend:

The World Bank has forecasted that Iran’s economic growth over the current year would hit 5.2 percent.

Through its Global Economic Prospects report released on Wednesday, Iran’s economic growth is projected to reach 4.8 percent in 2018 and 4.5 percent in 2019.

In the meantime the report has lowered the global economic growth forecast by 0.1 percentage to 2.7 percent in 2017 and 2.9 percent in 2018.

Growth in the Middle East and North Africa is set to accelerate through 2018 following the bottoming out of oil prices in 2016.

For oil-exporting economies, despite robust growth in the Islamic Republic of Iran, the recovery will be slightly slower than expected in mid-2016, reflecting fiscal consolidation plans (Gulf Cooperation Council countries and Iraq) and oil production capacity constraints (Iraq).

Earlier in December OPEC members agreed to cut their level of output in a bid to push up oil prices.

Growth is projected to be somewhat more robust for oil importers than expected in mid-2016, driven by a broad-based strengthening of activity in these countries.

Key risks to the outlook are a weaker-than-expected rise in oil prices and conflictrelated spillovers. Challenges include staying the course with policy adjustment, particularly fiscal policy, to support medium-term macroeconomic stability; diversifying away from oil; developing more dynamic private sectors; and harnessing potential demographic benefits.

GDP growth in the Islamic Republic of Iran and in Iraq is estimated to have strengthened considerably last year, bolstered by large gains in oil production and, in the former, a recovery in the agriculture, automotive production, and trade and transport sectors, the report said.

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