Page 33 - IRANRptJun22

UNCTAD data ‘shows Iran’s FDI inflow fell 11% in 2020’
Iran saw a foreign direct investment (FDI) decline of around 11% y/y in 2020, according to United Nations Conference on Trade and Development (UNCTAD) data cited on June 23 by Tehran’s Financial Tribune. Information in UNCTAD’s World Investment Report 2021 reportedly showed the UN agency assessing Iran’s FDI inflow at $1.34bn compared to $1.508bn in 2019.
Iran saw FDI inflows of $3.37bn and $5.01bn in 2016 and 2017 after the signing of the landmark 2015 nuclear deal. However, foreign investors turned away from Iran after former US president Donald Trump pulled Washington out of the deal in May 2018 and warned such investors that they could face secondary sanctions if they continued to do business with the Islamic Republic. The FDI inflow fell to $2.37bn in 2018, UNCTAD said.
The UN body also estimated Iran's direct investment in other countries at $78mn in coronavirus-afflicted 2020, 8% lower than the $85mn seen the year before.
Iran has lately been posting data showing it is emerging from a recession that lasted almost three years, with the introduction of Trump’s swingeing sanctions the main factor in the economic decline.
6.0 Public Sector 6.1 Budget
Iran’s president approves budget aiming for 8% growth in new Persian year
Iranian President Ebrahim Raisi on March 29 approved the public budget for the new Persian year (started March 20), ISNA news agency has reported.
Raisi previously unveiled a state budget that targeted GDP growth of 8%. The budget was also formulated on the basis of crude oil sales of 1.2mn barrels per day (bpd) with the perspective that US sanctions would be kept in place.
The sanctions are only likely to be lifted if Iran, the US and other major powers can, at the Vienna talks process, agree on a relaunch of the 2015 nuclear deal, or JCPOA. The process appears to be heading for a conclusion in the
33 IRAN Country Report June 2022 www.intellinews.com