Iran’s economic growth rate hits 5.5 per cent

Business Materials 27 December 2011 15:38 (UTC +04:00)

Azerbaijan, Baku, Dec. 27 / Trend F.Milad/

Iran's economic growth year stood at 5.5 per cent in the previous calendar year (ended on March 20, 2011), the deputy economy minister said in Tehran on Tuesday.

"The Subsidy Reform Plan is being implemented amid tight international sanctions. This issue shows the country's economic stability," the ISNA news agency quoted Mohammadreza Farzin as saying.

The plan launched in December 2010, allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash hand-outs.

Meanwhile, the Central Bank of Iran had previously reported that the country's economic growth in the previous (calendar) year stood at 3.5 per cent including the oil sector and 4.3 per cent excluding the oil sector.

According to World Bank predictions, Iran's Gross National Product will rise by 6.7 per cent in 2011 compared to the 6.1 per cent rise in 2010.

Iran needs up to $300 billion in foreign direct investment (FDI) to meet the objectives of its fifth five-year development plan (2010-2015) and reach an eight per cent economic growth rate, the Iranian deputy finance and economic affairs minister said in October.

"Overall, the country needs around $1 trillion investment by the end of the fifth development plan," Behrouz Alishiri told the ILNA news agency.

Some $15 billion in foreign direct investments was attracted last (calendar) year, he added.