Page 17 - IRANRptSep19

Iran plans to launch 15 mega export projects to identify more target markets, according to TPO’s former acting head, Mohammadreza Modoudi.
5.1.1 current account dynamics
Iran current account, USD mn
2011
2012
2013
2014
2015
2016
2017
2018
Balance of payments overall
-947
21,436
12,213
13,189
8,561
2,233
Current account balance
27,554
58,507
23,362
25,105
15,861
1,237
16,388
15,816
Current account balance: % of GDP
5.66
10.08
3.87
5.43
3.12
0.32
3.92
Total Exports
130,500
95,500
82,000
88,800
63,000
Total Imports
62,661
59,999
51,914
48,138
52,007
40,097
41,945
54,459
Trade Balance
68,692
42,049
32,291
35,231
20,5000
Source: CEIC, Central Bank of Iran
Iran running a current account surplus and has over $100bn of gross official reserves, says IMF
The International Monetary Fund (IMF) estimated in March that the government held $112bn of foreign assets and reserves. It also indicated that Iran was running a current account surplus. The figures imply that Iran might withstand the sanctions without an external payments crisis.
But the IMF also noted that Tehran was having difficulty accessing some of its reserves as its relations with foreign banks were constrained by the threat of US sanctions. Meanwhile, sanctions could cut the current account surplus sharply given the severe disruption they are causing to trade.
The IMF estimated in its World Economic Outlook released last October that Iran’s current account surplus would see a decline from 2.2% of GDP in 2017 to 1.3% in 2018 and 0.3% in 2019.
5.1.2 Import/export dynamics
Bilateral trade between Iran and EU collapses 76% in H1
Trade between the European Union and Iran in the first half of this year collapsed by 76.01% y/y to reach €2.56bn, according to latest data from the Eurostat European Statistical Office, the Financial Tribune r eported. European companies have mostly mothballed business that was conducted between themselves and Iran since the US last year cranked up the punishing sanctions regime it is directing at Tehran.
Germany, Italy and the Netherlands were Tehran’s biggest European trading partners during the first-half period with bilateral trade values of €777.32mn, €451.63mn and €260.82mn, respectively.
Some European nations appear to have almost ceased all trade with Iran, with the value given in relation to Malta only €147,233, to Slovakia €2.36mn, Greece €21.63mn and Portugal €6.14mn. These countries thus saw 99.96%, 97.79%, 96.85% and 96.45% falls in their trade figure with Iran, respectively. The figures also showed Iran sent €418.31mn worth of commodities to the EU during the six-month period, marking a decline of 93.15% y/y.
Germany remained the top export destination (€99.64mn), followed by Italy (€94.51mn) and Belgium with (€75.37mn).
Imports from the EU dropped 53.13% to stand at €2.14bn.
Germany was the biggest exporter to Iran (€677.68mn), while other figures
17 IRAN Country Report September 2019 www.intellinews.com