IRNA – Central Bank of Iran (CBI) announced that the gross domestic product grew 7.4 percent in the first half of the current fiscal year (started March 20) compared to the figure for the same period last year.
Saeed Leylaz in an opinion published in the Monday edition of Tehran-based English newspaper, Iran Daily, wrote that CBI figures further indicated that Iran’s economy recorded a 9.2-percent growth in the second quarter of this fiscal year.
This was the highest economic growth in the last 15 years and among the top in four decades.
On the basis of the GDP growth recorded in the first half of this fiscal year, the economic growth in the entire year (March 20, 2016-March 20, 2017) could at least hover around seven percent. The positive outlook can help overcome setbacks that Iran’s economy suffered in 2012 and 2013.
Most of the economic growth pertains to the oil sector. The agricultural sector also played a major role in boosting the growth in GDP.
In the auto sector, car-manufacturers increased production by 30 percent in the first half of the year, which constituted one percent of the 7.4-percent economic growth. Auto makers may account for up to two percent of the country’s GDP growth by the end of the current fiscal year.
CBI data indicate that the economic plans of President Hassan Rouhani’s administration have been completely correct. Presently, Iran is among the world’s fastest growing economies.
Based on CBI figures, the government’s comprehensive plans have contributed to an upswing in the country’s economic growth. The prospect can help tackle economic flaws in the coming years.
Meanwhile, the high economic growth has raised a question. ‘Why do the people not feel the impacts of the 7.4-percent economic growth on their lives?’
Iran’s economy fell so sharply in 2012 and 2013 that people cannot still feel the impacts of the economic achievements of the government of President Rouhani.
Besides, shockwaves of the sharp fall will hinder efforts to restore people’s purchasing powers in the next few years.
Four main challenges namely, corruption, lack of productivity, reluctance of the private sector to invest as well as poverty and economic disparity were prevalent under the administration of former president Mahmoud Ahmadinejad (2005-13).
Such challenges have not been tackled and can adversely affect the continuation of the economic growth next year.