World Bank: Iran's economy has emerged from a two-year recession
News_Code: 355461 10/10/2021 1:13:58 PM
World Bank: Iran's economy has emerged from a two-year recession
Iran's economy emerged from a two-year recession thanks to the limited remission of the Corona crisis and the gradual increase in crude oil production from the second half of 2020.
 

According to the World Bank website, Iran's economy emerged from a two-year recession thanks to the limited remission of the Corona crisis and the gradual increase in crude oil production from the second half of 2020.

However, weak economic activity under US sanctions, low oil revenues, and rising government spending to deal with the Corona pandemic have widened the budget deficit, leading to severe inflationary pressures and currency devaluation.

Iran's economic growth is expected to remain modest, given the vague outlook for the new Corona outbreak, the failure to lift sanctions, Afghanistan crises, and climate change.

Recent developments

Following a recession that lasted more than two years, the Iranian economy is experiencing a slow recovery in the fiscal year 2020-2021.

The gradual recovery of global demand and the reduction of quarantine restrictions, which have strengthened demand in the oil and production sectors, caused the Iranian economy to grow by 3.4% in the fiscal year 2020-2021.

The latest industrial production data show that economic activity has declined with the new wave of the Delta Corona in August 2021.

The employment rate between April and June 2021 remains 2.1 percent lower than before the pandemic, and data show that the situation for women has been worse.

Outlook

Iran's economic outlook is shaped by estimates of the Corona pandemic's path in the country, the recovery of trade partner demand, and geopolitical developments.

Iran's average economic growth is projected to remain below 3% in the medium term.

Corona vaccination and the possibility of imposing new quarantine restrictions, along with low investment rates, are critical factors in this outlook.