Iran reports 5.7% economic growth for year to March 2024

Iran’s economy grew by 5.7 percent in the fiscal year ending in late March 2024, marking the highest growth since 2017, according to the Statistical Center of Iran (SCI).

In its latest report, the SCI said the growth of the gross domestic product (GDP) for the year ending in March 2024 at the constant prices of 2017 is equivalent to 5.7 percent of the total GDP and 3.4 percent of the GDP minus oil.

The field of activities of industries and mines group grew by 6.9 percent, the services group by 5.7 percent, and the agriculture group by 2.2 percent compared to the previous year.

Earlier this month, the World Bank (WB), in its latest report, predicted that Iran’s economy will grow 3.2 percent in 2024 and the inflation rate will decrease to 35 percent.

According to the estimate of the international body, Iran’s economy experienced a five percent growth and a 40.8 percent inflation in 2023.

The bank has forecast that the industrial sector in Iran will take the lead in 2024, experiencing a 4.9 percent growth, followed by the services and agricultural sectors with a 2.7 and 0.9 percent growth.

In addition, the World Bank has predicted that Iran’s export of goods and services will exceed 7.1 percent in 2024 compared to the preceding year.

Also, the bank expects that import of products into the country will experience a 1.8 percent growth in 2024 compared to a year earlier.

The balance of Iran’s current accounts will also experience positive growth and reach 2.7 percent of the gross domestic product (GDP) in 2024.

In late February, the International Monetary Fund (IMF) reported the Iranian economic growth in 2023 to be 5.4 percent.

The head of Iran’s Plan and Budget Organization (PBO) said the country’s 5.4 percent economic growth in 2023 was the second-highest rate in the world.

IMF also increased its estimate of Iran’s economic growth in 2024, citing a higher-than-expected surge in the country’s oil production.

The IMF, in its report published on February 22, forecast a 3.7 percent economic growth for Iran in 2024 while the figure in its October prediction was 2.5 percent.

The IMF data showed that Iran’s economic growth reached 5.4% in 2023 while the international agency had predicted a three percent growth for the country in the previous year.

Iran’s oil and gas industry’s development has a direct impact on the country’s economic growth, as the effect was felt during the previous administration’s term, when the U.S. withdrawal from the Iran nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA), and reimposition of sanctions reduced Iran’s oil production and exports and even led to negative gross domestic product (GDP) for a couple of years.