The Iranian economy will see 1 percent and 4 percent growth rates this year and the upcoming year, respectively, when the Iranian economy breathes in the post nuclear accord era, Business Monitor predicted.
Having assumed sanctions relief from the nuclear accord, Business Monitor said the economy is forecast to grow 1 percent this year in its most recent report on macroeconomic indexes of the Iranian economy. The negligent rise has been associated with low oil price.
According to the report, declining oil price puts pressure on the Iranian government to reduce current spending and investment in its economic infrastructures in 2015, ending up in a slow private fixed investment and consumption.
However, the highlight of the report says 2016 is going to be a boom year for the Iranian economy.
Moreover, according to the report, inflation is to rise up to 23 percent by this year and 18 percent by the next year.
According to the World Bank, Iran, following Saudi Arabia, is the second largest economy in the Middle East and North Africa (MENA) region with an estimated GDP of $406.3 billion in 2014.
The Central Bank of Iran has announced that the national economy expanded by 3 percent in the previous Iranian calendar year, which ended on March 20, 2015.
The World Bank has forecasted Iran’s GDP will grow by 1 percent in 2015. It also predicted a 2 percent GDP growth for the country in 2016.