World Bank forecasts 4.7% economic growth for Iran

ILNA:The growth of Iran’s GDP is projected at 4.7 percent in 2018, a World Bank report forecasted.

In its June 2016 Global Economic Prospects report, the World Bank (WB) has suggested that Iran’s GDP would stand at 4.9 in 2017 and 4.4 in 2016.

In the Islamic Republic of Iran, the combination of low oil prices and uncertainty surrounding the timeline for the lifting of sanctions slowed growth significantly, the report suggested.

According to the report, growth in the Middle East and North Africa was an estimated 2.6 percent in 2015, slightly down from 2.9 percent in 2014 and broadly in line with January estimates.

The report further added that the easing of sanctions has opened Iran to international trade and investment.

In April 2016, Iran’s crude oil production was 3.6 million barrels per day (mbd), 25 percent higher than average monthly production in 2015, and already at the upper end of the 0.5-0.7 mbd increase estimated last October for the post-sanctions period.

The post-sanctions era also holds strong promise for the Iranian financial services, mineral and metals, and manufacturing industries.

To the extent that higher Iranian oil production marginally reduces global oil prices, the impact of the country’s reintegration into the global economy is likely to be negative for other oil producing countries, including those in the Middle East, the report said.

The impacts of the Islamic Republic of Iran’s reintegration into the global economy through trade channels are more challenging to assess, but exports from the European Union to the Islamic Republic of Iran, for instance, stand to approximately double if they rebound to the levels seen prior to the tightening of sanctions in 2012.

Meanwhile the report highlighted that countries neighboring Iran may benefit from increased trade links and travel.

The report was published June 8 on the World Bank’s official website.