Iran’s economic growth rises

Business Materials 2 November 2015 18:43 (UTC +04:00)

Tehran, Iran, November 2

By Mehdi Sepahvand -- Trend:

Economic growth in Iran rose one percent during the first half of the current Iranian fiscal year (March 21 to September 21), government spokesman Mohammad Baqer Nobakht said.

He added that although the increase shows an improvement from a 6.8 percent decline two years earlier, it is far from the hoped-for increases, IRIB news agency reported November 2.

Further, the official said the government has a plan to be carried out in the second half of the year to stimulate demand.

According to Nobakht, who is also the director of the Management and Planning Organization, the organization needs to boost government spending on urban development projects, which is seen as a tool to acquire capital assets.

He noted that while President Hassan Rouhani had pledged to Iranians to spend 75 trillion rials on urban projects, Treasury records show that the Rouhani administration has so far only spent 204.55 trillion rials.

He added estimates indicating that each 970 trillion rials spent in urban projects improves the country's economic growth by one percent.

Also, Supreme Leader Ayatollah Ali Khamenei has required the government to set a target of eight percent annual economic growth.

The World Bank and the International Monetary Fund have predicted that Iran's economic growth will reach five to six percent next year.