In a new report, the World Bank has forecast Iran’s economic growth to slow down in the years to come.
“In the Islamic Republic of Iran, growth in FY2023/24 has been revised down by 0.5 percentage point to 2.2%, on account of slower growth in key trading partners and new export competition from discounted Russian oil. Domestic demand is also likely to be curbed by the effects of high inflation on real incomes, which is expected to average 44% in FY2023/24. Growth is projected to slow further, to 1.9%, in FY2024/25,” reads the World Bank’s January 2023 edition of flagship Global Economic Prospects report.
The report estimates that Iran’s real GDP growth at market prices will stand at 2.9% in the fiscal 2022-23, down from 4.7% in the previous year.
Output in the Islamic Republic of Iran is boosted in 2022 by “the waning of the pandemic and higher oil prices. Growth is expected to slow subsequently, however, as unresolved structural challenges and feeble fixed investment limit the country’s growth potential,” read part of the June edition of Global Economic Prospects report.
The International Monetary Fund is expecting Iran’s economy to grow by 3% in 2022.
In its World Economic Outlook report titled “War Sets Back Global Recovery”, the IMF said the economy expanded by 4% in 2021.
Predictions for 2023 and 2027 are at 2%.
The IMF has put Iran’s 2014-2020 GDP growth at 5%, -1.4%, 8.8%, 2.8%, -2.3%, -1.3% and 1.8% respectively with the 2004-13 average at 2.5%.