Page 13 - IRANRptAug19

modest growth in 2020 of 0.2%.
The IMF observed that Iran’s current account balance is expected to turn negative in 2019 and 2020 with declines of 0.4% and 0.6% year on year, respectively.
The Fund’s report also noted that general unemployment in Iran was expected to increase from 13.9% in 2018 to 15.4% and 16.1% in 2019 and 2020, respectively.
4.0 Real Economy
Iran - Main Macro Indicators
2012 2013 2014 2015 2016 2017 2018
Annual GDP (y/y)
-6.6 -1.9 4.3 4.4 13.4 3.8 -1.9
GDP (per capita) (USD)
7,719.77 7,931.07 6,007.46 5,579.25 4,899.68 5,230.19 5,494.06
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
3,899,000 (Q1-Q2)
GDP: Final consumption expenditure: Government (IRR bn)
713,990 868,334
1,160,266
1,301,000
1,700,000
1,952,000
1,134,000 (Q1-Q2)
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
1,578,000 (Q1-Q2)
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 president tasks officials with creating a “production boom” in face of US sanctions
Iranian President Hassan Rouhani has tasked ministries and state bodies to pursue measures that will create a production boom and has ordered the removal of barriers to foreign investment that could be delivered by expatriate Iranians, Mehr News reported on May 20.
Iran’s economy is reeling from the unprecedented US sanctions regime aimed at everything from the automotive sector to oil, gas, petrochemicals, metals, banking and nuclear technology , among many other areas. Foreign investment has plummeted with large players like Total and PSA Group exiting the country. The Islamic Republic finds itself sinking into a deeper and deeper recession. In April, the IMF predicted its economy would contract 6% this year—but that forecast was put together before the US, from May, started a campaign to drive Iran’s lifeline oil exports to zero. The road ahead could therefore be that much more torrid.
The president wants the scrapping of unnecessary and redundant regulations and the relaxation of rules for inward investment where possible.
Iran‘s Cultural Heritage, Handicrafts and Tourism Organisation (CHHTO) has been tasked with attracting more inbound visitors by whatever means are necessary and feasible.
13 IRAN Country Report August 2019 www.intellinews.com