Page 12 - IRANRptMay19

4.0 Real Economy
Iran - Main Macro Indicators
2012 2013 2014 2015 2016 2017 Mar-2018 Jun-2018
Annual GDP (y/y)
-6.6 -1.9 4.3 4.4 12.5 4.3 2.9 2.6
GDP (per capita) (USD)
7,719.77 7,931.07 6,007.46 5,579.25 4,899.68 5,230.09 5,492.19 / (2018)
GDP: Final consumption expenditure: Private (IRR bn)
3,208,428 4,505,167 5,262,427 5,656,000 6,236,000 7,032,000 1,908,000 1,991,000
GDP: Final consumption expenditure: Government (IRR bn)
713,990 868,334 1,160,266 1,301,000 1,700,000 1,952,000 665,000 469,000
GDP: Gross fixed capital formation, (IRR bn)
1,809,515 2,386,025 3,048,276 2,606,000 2,552,000 2,885,000 994,000 584,000
GDP: Exports, (lRR bn)
473,222 376,386 376,240 421,236 / /
GDP: Imports, (IRR bn)
449,701 345,821 281,210 265,210 / /
Source: CEIC; Central Bank of Iran
4.1 Industrial production
Iranian government offers industrial facilities IRR200tn to help with economic downturn
Iran’s Rouhani administration has created a special emergency fund with capital of IRR200tn (€1.29bn) to assist industrial enterprises struggling to cope amid the country’s recession, IRNA reported on February 27.
Iranian industry in Iran has been ravaged in recent months by the collapse in the value of the Iranian rial (IRR) and consequent increases in raw materials prices, a situation sparked by the reimposition of heavy sanctions against Tehran by the US last year. Several thousand companies have either cut their workforce or shut down completely due to supply chain failures and clients that proved unable to pay invoices.
According to Minister of Industry, Mining and Commerce Reza Rahmani some “10 trillion tomans [IRR100 trillion] have been allocated from the resources of the banks and 10 trillion tomans from the resources of the National Development Fund [NDF]”.
The funds will be offered in the form of five-year loans with interest rates below the rate of inflation. Two applicable rates will be 14% for enterprises in large cities and 12% for industries seen as facing particular hardship.
Twelve repayments on the loans will be expected annually, with a six-month grace period allowed at the beginning of the loan period
The programme will be operated with the website www.behinyab.ir .
The government has been forced to dip into the NDF in recent months because income from its usual sources, including oil export sales, has diminished in the face of what President Hassan Rouhani has referred to as Washington’s “economic war”.
12 IRAN Country Report May 2019 www.intellinews.com