Iran to face negative -5% economic growth in new year

Business Materials 1 April 2019 12:26 (UTC +04:00)

Tehran, Iran, April 1


Masoud Nili former economic advisor to President Hassan Rouhani has indicated that Iran would have -5 percent economic growth in the new Iranian year (started March21.2019).

"There is high probability that the negative growth would deepen in the new year. On the other hand, there is more certainty regarding the inflation, which depends on proper policy making," he said.

"Another issue that would effect the inflation in the new year is the condition of banking systems and changes in foreign exchange market," said Nili.

"In general, we can't expect a good year for Iranian economy," he added.

Nili said Iran's economic image for new year is alarming.

"The volume of liquidity is rising, sanctions are draining the economic resources and the government resources might shrink too. If we imagine that for example this year's economic growth is -3 percent, it would be equal to loss of around $1.1 billion per month," he added.

He went on to add that rise of liquidity, alongside recession and multi-pricing system , would allow for corruption, unemployment.

"This would create a left-wing populism, dangerous for the future of Iran's economy," he said.