Page 25 - IRANRptOct22

2016 on charges of "propaganda against the government" and "collusion against national security."
Iran has also lately seen protests against the cost of living, tax hikes and rial currency instability faced by traders and alleged corruption that lay behind the late May collapse of a purportedly poorly constructed 10-storey building in Abadan, killing dozens.
4.4 Gross fixed capital formation
Capital expenditure is strong
One source of Iran’s above-peer performance is not hard to find: gross fixed capital formation (the sum total of investment in capital goods in an economy – broadly national capex) was above 30% as recently as ten years ago, and in spite of the pandemic is still well above 20%.
Ten years ago US GFCF was 18%, and while it has recovered it is still lower than Iran’s, as is GFCF in the EU, Saudi Arabia and Israel. GFCF is the most significant driver of GDP growth after population changes and urbanisation, and Iran’s GFCF has been largely unscathed by either sanctions or COVID.
A key support for GFCF is the national savings rate – the percentage of GDP saved in one way or another. Iran’s GNS rate is around 38% (source: CIA). Compare that with the EU (22%), the UK (13%) and the US (18%). In GNS terms Iran is a peer of China (44%), Singapore (43%), Switzerland (35%) and South Korea (35%).
Once the COVID-19 effect passes Iran’s non-oil GDP should start growing again at a trend rate of 3-4% – a rate that most of the EU would sell their grannies for.
25 IRAN Country Report October 2022 www.intellinews.com