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3.2 Macroeconomic outlook
Iran set to see growth after three years of recession says World Bank
Iran has endured three years of recession under US sanctions (see table below) but if the forecasting of the January edition of the World Bank’s Global Economic Prospects report proves correct 2021 should bring growth.
The World Bank anticipates Iran recording a GDP expansion this year of 1.5%, followed by 2022 growth of 1.7%. Should Tehran manage to strike a breakthrough deal for the lifting of heavy US sanctions by the incoming Joe Biden administration and should the coronavirus crisis be for the most part overcome in the Islamic Republic in the year ahead, the forecasts would likely be substantially upgraded.
“Growth in the Islamic Republic of Iran is expected to recover as domestic consumption and tourism begin to normalize, and disruptions related to COVID-19 taper. Oil production in MENA [Middle East North Africa region] is expected to rise as global oil demand recovers,” the World Bank wrote in the report edition.
Iran is among countries that has had to dip into its sovereign wealth fund in the past year to mitigate fiscal pressure caused by the effects of the coronavirus pandemic, it added.
15 IRAN Country Report February 2021 www.intellinews.com
