In a report on Iran\u2019s economy released earlier this month, the World Bank has revised up its forecast for Iran’s gross domestic product (GDP) growth in 2022, expecting the country\u2019s economy to grow 3.7 percent this year.<\/p>\n\n\n\n
The bank had previously estimated the Islamic Republic\u2019s GDP growth at 2.4 percent for 2022, in its Global Economic Prospects (GEP) report released in January.<\/p>\n\n\n\n
\u201cIran\u2019s economy continues its gradual recovery that started in mid-2020, driven by the oil sector and services. However, water and energy shortages led to a contraction of the agriculture and industry sectors,\u201d the recent report said.<\/p>\n\n\n\n
A recovery in Iran\u2019s oil and service sectors (11.7 and 6.5 percent growth, respectively) \u2013 following a return of global and domestic activity after the start of the pandemic \u2013 led to a five percent year on year growth in late 2021-early 2022, the bank said.<\/p>\n\n\n\n
However, the agriculture sector contracted by 2.1 percent due to drought and energy blackouts. On the demand side, a 3.4 percent expansion in consumption drove GDP growth as activity returned closer to pre-pandemic levels. Imports growth (25.5 percent) outweighed the pick-up in exports (5.4 percent), and investment also declined (5.2 percent).<\/p>\n\n\n\n
The economic rebound has yet to be reflected in the labor market as the recovery was largely driven by the oil sector, and employment growth in services and industries could not compensate for job losses in the agriculture sector, the report stated.<\/p>\n\n\n\n
The bank puts Iran’s economic growth at 4.1 percent in 2021 and about 3.4 percent in 2020.<\/p>\n\n\n\n
World Bank which had estimated Iran’s inflation rate at 40.1 percent for 2021 believes that it would fall to 37.6 percent this year and 34.8 percent next year.<\/p>\n\n\n\n
\u201cHigher projected oil prices in the outlook period and growth in oil export volumes considering the tighter global oil market are forecast to curb fiscal pressures. However, high expenditure growth due to increasing wage bills and pension spending is projected to keep the fiscal balance in a deficit of 3.8 percent of GDP in 2022-24.\u201d the bank said in its report.<\/p>\n","protected":false},"excerpt":{"rendered":"
In a report on Iran\u2019s economy released earlier this month, the World Bank has revised up its forecast for Iran’s gross domestic product (GDP) growth in 2022, expecting the country\u2019s economy to grow 3.7 percent this year. The bank had previously estimated the Islamic Republic\u2019s GDP growth at 2.4 percent for 2022, in its Global […]<\/p>\n","protected":false},"author":4,"featured_media":3414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[16,2],"tags":[],"class_list":["post-3413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-iran-news","category-news"],"yoast_head":"\n