Iran's economic growth next year to be negative

Business Materials 7 January 2019 16:07 (UTC +04:00)

Tehran, Iran, Jan.7


Deputy Head and speaker of Iran-China Joint Chamber of Commerce criticized Iran's economic reliance on oil revenues and said that the country`s economic growth is closely related to the oil price changes in global markets, so there has been a meaningful and direct relationship between these changes over time.

Such an experience shows that Iran's economy is totally reliant on oil revenues run by the government, which has increased its vulnerability, Deputy Head and speaker of Iran-China Joint Chamber of Commerce Majid-Reza Hariri told Trend.

“Accordingly, economic officials, who are aware of the decline in oil prices and the pressure exerted by US sanctions on the Iranian oil market, predict a dramatic decline in economic growth next year,” Hariri said.

“Meanwhile, in addition to the Parliament`s Research Center, which predicts -3.8 to -5.5 percent growth rate for the next year, international research institutes such as the IMF and the World Bank have also considered such negative growth for Iran,” he said.

“Therefore, before we can predict the country's economic future, we should note that Iran's economy is inherently ill,” said Hariri. “The country's economic growth depends solely on oil revenues.”

He went on to say that the Iran`s situation in international area makes the prediction of the above negative economic growth fully acceptable.

“The restrictions on access to foreign exchange reserves and restrictions in the country's trade relations with other countries reflect the fact that the country's economy will face the negative trend in the coming year,” the deputy head of Iran-China Joint Chamber of Commerce said.