UN foresees Iran inflation rate to hit 14%

Business Materials 22 May 2015 12:16 (UTC +04:00)

Baku, Azerbaijan, May 22

By Fatih Karimov - Trend: The United Nations has predicted that Iran's inflation rate will hit 14 percent in the current year.

In its latest report, the UN also predicted that the inflation rate would reduce to 12 percent next year. It has also predicted a GDP growth rate of 2.5 percent for the current year and 2.8 percent for the next year, Iran's Fars news agency reported May 22.

Iran's situation is just better than Venezuela among developing nations.

The report predicts a positive prospect for OPEC member states to reach stability in the supply of crude oil. Based on the report, Iran's oil export will be more than one million barrels per day in 2015, if the country reaches an agreement with the UN Security Council in the nuclear talks.

The inflation rate in Iran hit 15.5 percent in the first fiscal month of Farvardin (ended on April 20), according to the Central Bank of Iran.

Iranian First Vice President Es'haq Jahangiri said March 20 that President Hassan Rouhani's administration managed to lower Iran's economic inflation from 40 percent when it came to office to 16 percent at the end of the previous Iranian fiscal year (March 20).

According to an early April report by the IMF, Iran's economy contracted by 6.6 and 1.9 percent in 2012 and 2013 respectively. Last year it hit 3 percent and for the current year it is expected to reach 0.6 percent. For the next year, Iran's economic growth is expected to reach 1.3 percent.

Rouhani has promised to decrease the inflation rate to 5 percent in the Iranian fiscal year of 1395 (to end on March 20, 2017).

Edited by CN