Iran’s Central Bank confirms economy shrank by 5.4 percent
Azerbaijan, Baku, Sep.10/ Trend, F. Karimov/
The Central Bank of Iran has confirmed that the national economy contracted by 5.4 percent in the past Iranian calendar year, which ended on March 20, the Mehr News Agency quoted Iranian economy minister Ali Tayyebnia as saying.
According to Iran's statistical center, the country's economy contracted by 5.4 percent in the past Iranian calendar year, ISNA quoted Iranian president's deputy for planning Mohammad-Baqer Nobakht as saying.
The Central Bank has put the inflation rate at 44 percent. This shows recession in the country, Nobakht said.
Low economic growth rate is currently the main challenge in the national economy, ISNA quoted Tayyebnia as saying.
Tayyebnia referred to high unemployment as another serious concern.
For the time being, some 3.5 million people are jobless in the country, he said, adding that the figure will soar to 8.5 million, because a large number of educated youth will graduate soon and will be seek jobs.
The ministry will focus on improving living standards through curbing inflation and flourishing businesses, he stated.
The Central Bank of Iran has recently reported that the country's gross domestic product (GDP) growth rate (excluding oil sector) was 3.2 percent in the Iranian calendar year 1390, which ended in March 2012, ISNA reported.
This is while the Statistical Center of Iran had put the figure at 3 percent.
The central bank has said that the GDP growth rates were 6.38 percent, 3.16 percent, and 0.83 percent in years 1389, 1388, and 1387 respectively, while the statistical centers has put the figures at 5.8 percent, 3 percent, and 0.8 percent respectively.
In July, former Iranian finance and economic affairs minister Shamseddin Hosseini said that the country's GDP is on the verge of $1 trillion, and that the country's national economy stands at 17th place in the world.
The International Monetary Fund has said that Iran's GDP at current US$ stood at $482 billion in 2010, standing at the 25 place in the world. Iran is at the 79th place in terms of per GPD per capita.
The World Bank also estimated that Iran's GDP in 2011 was $514.059 billion.
Considering that Iran faced 1.9 percent economic contraction in 2012 and the national currency devalued by 40 percent during that year, the GDP at current US$ has even decreased below $482 billion.