Page 11 - IRANRptNov18

Academic appointed new Iranian economy minister in advance of more stringent US sanctions
On August 28, Oxford Economics said the second and heavier phase of US sanctions aimed at Tehran—set to take effect on November 5— will tip the Iranian economy back into recession with its GDP set to contract by 3.7% in 2019. A GDP contraction of 3.7% in 2019 would be the worst economic performance by Iran in six years.
Iranian President Hassan Rouhani has appointed academic Farhad Dejpasand as the new economy and finance minister, state television reported on October 21. Officials are battling a collapse of the Iranian rial and surging inflation, which, according to some economists, is running at 250% or more.
Rouhani also named a new urban development and roads minister, an industry, mines, and trade minister, and a new labour minister. Parliament must approve the new appointments before they can take effect.
Mohammad Shariatmadari, the outgoing industries minister, has been nominated to take over the Labour, Cooperatives and Social Affairs Ministry. Mohammad Eslami was named to head the Urban Development and Roads Ministry, and Reza Rahmani, who earlier headed the parliament’s commission on mining and industry, was named as the new industry, mines, and trade minister.
Dejpasand is a technocrat who has worked for organisations including the state’s Plan and Budget Organization.
Parliament sacked the ministers of labour and of economy and finance earlier this year, after accusing them of being ill-prepared to defend the rial and battle roaring inflation after Washington reintroduced sanctions against Iran’s currency trade, metals and auto sectors, among others, in August.
3.2 Macro outlook
US sanctions assault has sent Iran into recession: IMF
US sanctions have pushed Iran’s economy into recession and the situation is set to worsen as Washington steps up its economic drive against Tehran, the International Monetary Fund (IMF) said in its latest World Economic Outlook released late on October 8.
The IMF estimated that the Islamic Republic’s economy will contract by 1.5% this year and 3.6% in 2019 under the current circumstances. The US will
11 IRAN Country Report November 2018 www.intellinews.com