Baku, Azerbaijan, June 11
By Umid Niayesh - Trend:
Iran's gross domestic product (GDP) will grow by 1.5 percent in 2014, according to the World Bank's newly-released Global Economic Prospects report.
Iran's GDP growth is forecasted to reach 2 percent and 2.3 percent in 2015 and 2016, respectively, the World Bank's latest Global Economic Prospects report, issued on June 10 said.
The World Bank estimated that the Iranian GDP contracted by 1.7 percent in 2013. This was preceded by a 5.6 percent shrink in 2012.
Last September the Central Bank of Iran announced that the national economy contracted by 5.4 percent in the Iranian fiscal year, which ended on March 20, 2013.
Iranian Finance and Economic Affairs Minister Ali Tayyebnia said the low economic growth rate is currently the main challenge in the national economy.
The World Bank report projected Iran's current account at 0.2 percent of GDP for 2014.
Current account to GDP in Iran will reach 0.1 percent in 2015 and zero in 2016, the report said.
The World Bank estimated that the country's current account balance/GDP stood at 0.3 percent and 4.7 percent in 2013 and 2012 respectively.
Fixed investment growth for Iran is predicted to reach 1.1, 1 and 1.5 percent in 2014, 2015 and 2016 respectively.
Iran's oil output also grew in 2014 Q1 to an average of 2.7 million barrel per day following the interim nuclear deal between P5+1(permanent five UN Security Council members plus Germany) which came into force on Jan 20, according to the report.
The report also reads that developing countries are headed for a third consecutive year of disappointing growth below 5 percent, as first quarter weakness in 2014 has delayed an expected pick-up in economic activity.
In contrast, recovery in high-income countries is gaining momentum, despite first quarter weakness in the United States. These economies are expected to grow by 1.9 percent in 2014, accelerating to 2.4 percent in 2015 and 2.5 percent in 2016. The Euro area is on target to grow by 1.1 percent this year, while the United States economy, which contracted in the first quarter due to severe weather, is expected to grow by 2.1 percent this year.
The global economy is expected to pick up speed as the year progresses and is projected to expand by 2.8 percent this year, strengthening to 3.4 and 3.5 percent in 2015 and 2016, respectively. High-income economies will contribute about half of global growth in 2015 and 2016, compared with less than 40 percent in 2013.