Iran’s real GDP growth to drop in 2019, says WB
Baku, Azerbaijan, Jan.9
By Leman Zeynalova – Trend:
Iran’s real GDP growth is estimated to drop to -3.6 percent in 2019, Trend reports with reference to the Global Economic Prospects of the World Bank (WB).
The World Bank estimates the country’s real GDP growth at -1.5 percent as of 2018.
However, Iran’s GDP is expected to recover in 2020 to stand at 1.1 percent, according to the WB. The same figure is expected in Iran for 2021 as well.
In general, WB believes that growth in the Middle East and North Africa is expected to pick up slightly in to 1.9 percent 2019, but prospects are uneven across countries.
“Accelerating activity in Saudi Arabia and Egypt is expected to be offset by a sharp contraction in Iran following the imposition of U.S. sanctions. Increased oil production and fiscal easing are supporting the recovery in some oil exporters, while oil importers continue to benefit from policy reforms,” reads the report.
Regional growth is projected by the WB to rise to 2.7 percent in 2020-21, as domestic demand among both oil importers and exporters shows a broad-based pickup, supported by reforms and diversification policies.
Key downside risks include the possibility of intensified geopolitical tensions, renewed volatility in oil prices, rising global trade restrictions, an abrupt tightening of global financing conditions, and delays in reform implementation, according to the report.