Economy grew 3% last year

Gross domestic product in the last Iranian year (ended March 20, 2015) reached 2,031 trillion rials ($70 billion at official exchange rate) at prices using the Iranian year 1383 (March 2004-05) as base year, according to a preliminary report released by the Central Bank of Iran Economic Research and Policy Department.

The figure indicates 3% growth compared to the previous year’s GDP of 1,972 trillion rials ($68 billion). The growth is significant given the 1.9% decline recorded in GDP value for the Iranian year 1392 (March 2013-14) in comparison to the preceding year.

Value added in key sectors, namely industries, financial/monetary institutions, transportation, and telecommunications accounted for 1.7%, 0.8%, 0.6% and 0.5% of GDP at basic prices respectively. Meanwhile the construction and oil sectors contributed -1.5% and -1.6% to the GDP respectively.

The report suggests that reduced government spending in infrastructure projects during the period was responsible for the negative growth in the construction sector.

A review of national expenditures during the period shows changes in private consumption expenditure, public consumption expenditure, gross fixed capital formation, exports and imports of goods and services by -0.1%, 3.8%, -17.7%, 15% and -13.5% respectively compared with the similar period in the preceding year.

By Financial Tribune