Central bank: Iran’s GDP growth rate at 5.8 percent

TEHRAN,March 7(MNA) - The Central Bank of Iran put the gross domestic production (GDP) for the previous calendar year 1389 (ended on March 20, 2011) at over 539 trillion rials (some $41 billion), up 5.8 percent year on year. The GDP growth rate stood at 3 percent in its preceding year, the report added. Meanwhile, the deputy economy minister said in December, 2011 that Iran’s economic growth rate hit 5.5 percent in the previous calendar year. “The Subsidy Reform Plan is being implemented amid tight international sanctions. This issue shows the country’s economic stability,” Mohammadreza Farzin said. The Subsidy Reform Plan has helped Iran reduce unemployment rate and continue economic growth in the current year despite speculation of some analysts on a surge in inflation rate. The plan, launched in December 2010, allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts.