The World Bank expects Iran's economy to bounce back to growth in 2021 with 2.1% in GDP expansion after having experienced an estimated 5.3% contraction this year.
In its June edition of Global Economic Prospects report, World Bank has revised down its forecast for Iran's growth in 2020. The previous such report had estimated 0% growth in 2020.
However, the forecast for next year has been revised up, as the previous report had forecast 1% growth in 2021.
According to World Bank, Iran experienced respective growth rates of -8.2%, -4.7% and 3.8% in 2019, 2018 and 2017.
"Iran’s GDP, which had already fallen in each of the previous two years, is expected to shrink again in 2020, by 5.3%, partly reflecting the effects of the large-scale Covid-19 outbreak on domestic consumption and the services sectors [such as tourism]," reads the latest report, adding that in many oil exporters, growth will be significantly constrained by renewed policy cuts in oil production.
"US-Iran tensions have not eased appreciably even as both countries attempt to cope with the effects of the pandemic," it said.