Iran Officials Predict Economic Growth Rate Will Exceed 3% By Next Year

Tehran, Aug 2, IRNA - President Hassan Rouhani’s administration has projected that the countryˈs economic growth rate will exceed 3 percent by next Iranian year (starting March 21, 2015). In the last two years of ex-president Mahmoud Ahmadinejad’s tenure, the economy experienced a negative growth of 5.8 percent, ˈIran Dailyˈ wrote in its Opinion column published Saturday. However, considerable efforts made by Rouhani’s administration rolled back the negative rate by March 2014 and subsequently caused a positive incremental growth. According to macroeconomic policies drawn up by official bodies, Iran’s economic growth must reach 8 percent until March 2015. Yahya Al-e Es’haq, the head of Tehran’s Chamber of Commerce, had earlier warned about the link between inflation and liquidity that adversely affects economic growth. He also said that unless the country’s economy makes a 4- to 5-perecent growth, economic prosperity will not materialize. Mohammad Baqer Nobakht, vice president for planning and strategic supervision, said the government’s achievements in interacting with the outside world would help achieve the target of positive economic growth. Nobakht said the government knows that reaching an agreement with major world powers over Tehran’s nuclear program would set the stage for improving the economic indices. “The interim Geneva deal reached between Iran and P5+1 (the five permanent members of the United Nations Security Council plus Germany) has helped ease imports and services indispensable to the production sector, which contributes to economic growth,” he said. Central Bank of Iran Governor Valiollah Seif said the government would focus efforts on accelerating economic growth. “As long as approaches adopted to make up for economic failures in the last two years of the former government do not meet expectations, plans pertaining to economic growth will continue to top the agenda of Rouhani’s administration,” he said. Although statistics herald a major breakthrough in economic indices, critics are cautiously optimistic about achieving positive economic growth without overhauling infrastructures. Such critics believe economic prosperity is contingent upon expanding economic infrastructures. In addition to the stances adopted by opponents and supporters of the government’s policies, economic reports will further demonstrate the achievements of the executive body and shed light on the potentials of economic growth./end