Page 12 - bne IntelliNews Country Report: Iran Dec17

Housing and utility expenses accounted for the majority of household expenditure, with a share of 35.5%. Food and beverages was the second highest category with 23%, followed by transport expenses at 11%, the CBI report noted.
The average monthly income in Iran during the surveyed 12 months stood at $860 per month and $10,320 per year, indicating an 11.3% jump in spending power adjusted for inflation.
The report also noted other trends in the country, including the shrinking size of Iranian families compared to just a few years back. The average Iranian family now has 3.33 members, down from 3.38 in 2015-16.
The average age range is also moving upwards. The largest demographic group is now aged 31-50 years-old, making up 31% of the population. Those under 20 make up 20%.
3.0 Macro Economy
3.1 Macroeconomic overview
Iran records 1Q Persian calendar year GDP growth of 6.5% y/y
Gross domestic product for the first quarter of the Iranian calendar year (started March 21) has come in at 6.5%, according to a report from the Statistical Centre of Iran (SCI) released on September 8.
The Rouhani administration is seen to have stuck to its guns on fiscal discipline over the course of its just-ended first tenure, while in its second term it proposes to get tougher on failing industries and banks. Over the coming years, the re-elected administration wants to see Iranian economic growth continue to record 6-8% per annum.
In Q1, the country generated roughly IRR1.8qn ($47bn) in economic output; removing oil sales from the equation reduces GDP to IRR1.4qn ($37.5bn), showing that sectors outside Iran’s leading industry saw 7% growth y/y. The oil sector alone expanded by 4.6% in 1Q.
The sectors of agriculture (fishing, forestry, husbandry and farming), industry (oil & gas extraction, mining, energy and construction) and services (hospitality, retailing, transportation, communications, education and health) achieved growth of 3.1%, 4.9% and 8.3% respectively.
In the 2016/2017 Persian year that ran to March 20, the figures show that the oil sector expanded by a whopping 61.6% y/y. Nuclear sanctions that newly opened the way to foreign oil sales were removed in January last year.
Iran’s economy is expected to grow anywhere from 5% to 12.5% in the current fiscal year, which will end in late March next year. Iran issues ‘competing’ economic statistics – the Central Bank of Iran (CBI) and cabinet release data, as well as the SCI.
12 IRAN Country Report November 2017 www.intellinews.com