Iran expects economic growth of over 5% in 2016
Iran expects economic growth of more than 5 percent in 2016, the Central Bank governor said on Saturday, after lifting of international sanctions over its nuclear program, IRNA reported.
The major oil producer's economy is still struggling and growth is close to zero but many investors are betting that restoring Iran's links with the world and attracting foreign capital and technology will trigger a long-term economic boom, Reuters reported.
'Iran's economic growth slowed down in 2015 but domestic and international predictions both indicate that growth in 2016 would be beyond five percent,' central bank chief Valiollah Seif said.
In January, world powers led by the United States and the European Union lifted sanctions on the country. The subsequent leap in Tehran's stock market in late January and early February gave a hint of the country's investment potential.
But President Hassan Rouhani said last month that his country needed 8 percent economic growth in order to deal with inflation and unemployment, both of which stand above 10 percent.
Energy Minister Hamid Chitchian said on Thursday Iran is implementing a development plan aiming for yearly growth of 8 percent.