TEHRAN, Iran, June 15
Trend:
The Iran Economic Monitor of the World Bank has provided an update on key economic developments and policies of the Islamic Republic, Trend reports via the World Bank.
Iran Economic Monitor is a product of the World Bank’s Global Practice for Macroeconomics, Trade and Investment (MTI) team. On June 15, an economic report on Iran was published.
The report referred the Iran`s restricted access to foreign exchange reserves and other limited external financing sources, adding that these constraints together with inflationary expectations led to higher inflation record of 36.4 percent in 2020-2021.
Financial sanctions on the CBI (Central Bank of Iran) and other financial institutions led to a sizable share of Iran’s official reserves becoming either inaccessible or frozen in banks abroad which in turn complicated financing of the current account deficit in 2020-2021, said the report.
According to the report, these constraints together with inflationary expectations led to higher production costs and ultimately higher prices for consumers.
The report forecasted that despite a moderate economic rebound, economic pressures on poor households in the country will continue.