In its latest report, the Central Bank of Iran states that the country’s economic growth in the spring was 3.2%, nearly half of the 2023 spring growth rate.
According to the Central Bank, the country’s economic growth in the spring of last year was 5.7%.
This sharp decline in economic growth is mainly attributed to the halving of the value-added from the oil sector, which was 16.5% in the spring of last year and about 9.5% this year.
Previously, the International Monetary Fund (IMF) along with the World Bank had predicted that Iran’s economic growth rate would slow significantly this year and continue to decline next year.
According to IMF estimates, Iran’s economic growth was 4.7% last year, but is expected to drop to 3.3% this year and 3.1% next year.
The relatively strong economic growth in Iran last year was due to a significant increase in oil production and exports, as well as a surge in government spending. Neither of these factors, however, has a direct impact on the welfare of the people or the prosperity of the market and industries.
On the other hand, OPEC data shows that Iran’s oil production growth has nearly stalled since mid-spring, meaning that the oil sector’s added value is expected to decrease significantly this summer compared to the same period last year.
The 12th and 13th Iranian administrations had set an 8% growth target in the Sixth Development Plan, which was not achieved. The Seventh Plan, which will be implemented for five years starting this year, once again emphasizes the need for 8% economic growth.
On August 31, Iranian regime President Masoud Pezeshkian announced that reaching an 8% economic growth rate would require $200 billion in investments.
Pezeshkian said, “The total money we have in the country is not more than $100 billion. Therefore, we need $100 billion in foreign investment, and this depends on our relations with the outside world, neighboring countries, and Iranians abroad.”
However, according to UN statistics, Iran attracted less than $1.5 billion in foreign direct investment last year.
