Page 11 - bne IntelliNews Country Report: Iran Dec17

Iranian household expenditure grows for first time in half-decade
places to 120t h .
The second straight year of weakening statistics come as yet another blow to reformist Iranian President Hassan Rouhani. Slightly after the damning report was issued, he met with the heads of the j udiciary and parliament to promote foreign direct investment in the country.
The study and ranking highlights regulations that affect small and medium-sized companies across 11 spheres. These include creating a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders and enforcing contracts.
The report said Iran improved in getting credit, starting a business and dealing with construction permits but worsened in terms of registering for electricity, buying property and dealing with construction permits.
Another negative point was the field of resolving insolvency in the country, with Iran scoring 15.4 points for the recovery of bad debts while the Middle East and North Africa regional average was 25.5.
The report highlighted how Iranian laws discriminate against women starting enterprises, stating that “the husband can prevent his wife from occupations or technical work which is incompatible with the family interests or the dignity of himself or his wife”. It also notes that all potential business owners must obtain a criminal record clearance including a drugs test.
The Iran Chamber of Commerce, Industries, Mines and Agriculture lately issued a report claiming that doing business in the Islamic Republic had improved in the past 12 months. According to its survey, which is based on the World Bank system, the country’s index gained to 5.69 points by spring this year, up from 5.83 in the winter of 2016.
That report echoed grievances of local business owners over a lack of available credit in the country, as well as of fluctuations in the prices of raw materials including metals. Access to electricity, gas and the internet improved in the internal indices compiled by the chamber.
New figures released by the Central Bank of Iran (CBI) show Iranian household expenditure growing for the first time in half a decade, the Financial Tribune daily reported on October 2.
Expenditure in Iran shrank considerably during the period of nuclear sanctions with the prices of goods in the consumer price basket tripling on average in 2011, given the sanctions and what critics saw as gross economic mismanagement by the two-term Ahmadinejad government, which lasted until the Rouhani administration was voted in in 2013.
The fresh CBI data refers to the Persian calendar year across 2016-2017. A survey of 17,543 households across 79 cities and large towns showed spending power up 2% y/y, with the previous Persian year seeing a 7% y/y decline.
The survey also recorded a 3.8% y/y increase in private sector investment.
11 IRAN Country Report November 2017 www.intellinews.com