The World Bank released a report examining the World Economic Outlook for 2021 and assessing the economic situation last year.
End of Iran's economic recession
Iran's economy has negative growth over the past three years, but even despite the Trump administration's campaign of maximum pressure and the high prevalence of the corona in Iran, which has made it the main concentration of Covid-19 in the Middle East, negative economic growth, according to The World Bank forecast, will end after three years. For 2021 and 2022, Iran's economic growth is projected at 1.5 and 1.7 percent, respectively. In 2018 and 2019, Iran's economic growth was negative 6 and 6.8 percent, respectively.
Better-than-expected performance in 2020
According to the World Bank's initial estimate, in 2020, Iran's economic growth was negative 3.7 percent, which was 1.6 percent better than the previous estimate. For comparison, this year's world average economic growth was negative 4.3 percent and for advanced economies was negative 5.4 percent, on average.
According to the World Bank, this comes when the corona has shrunk the Middle East and North Africa economies by an average of five percent; according to World Bank, and Iran was the first country in the region to face an epidemic. As a result of the corona outbreak, many businesses were shut down or operated at very low capacity, and the sharp drop in oil prices on world markets also put a lot of pressure on the region's foreign exchange earnings.
Economic growth resumes
The World Bank has stated in another part of its report on Iran: The (positive) economic growth trend is expected to resume with the revival of household consumption demand and the tourism sector's growth. It also stressed the need for more investment in infrastructure to achieve long-term growth.