Page 14 - bne IntelliNews Country Report: Iran Dec17

Iran's inflation rate rose to as high as 40% during the second term of former President Mahmoud Ahmadinejad. The Rouhani administration, which took over in August 2013, managed to push it down to less than 10% by the summer of 2016.
4.0 Real Economy
Iran - Main Macro Indicators
2011 2012 2013 2014 2015 2016 1Q17
Annual GDP (y/y)
3.8 -6.6 -1.9 4.3 4.4 12.5 6.5
GDP (per capita) (USD)
6,563.55 7,719.77 7,931.07 6,007.46 5,579.25 4,899.68 /
GDP: Final consumption expenditure: Private (IRR bn)
2,654,281 3,208,428 4,505,167 5,262,427 5,656,000 6,236,000 1,732,000
GDP: Final consumption expenditure: Government (lIRR bn)
578,400 713,990 868,334 1,160,266 1,301,000 1,700,000 560,000
GDP: Gross fixed capital formation, (IRR bn)
1,529,548 1,809,515 2,386,025 3,048,276 2,606,000 2,552,000 859,000
GDP: Exports, (lRR bn)
474,863 473,222 376,386 376,240 421,236 / /
GDP: Imports, (IRR bn)
496,227 449,701 345,821 281,210 265,210 / /
Source: CEIC; Central Bank of Iran
4.1 Industrial production
Iran’s Minister of Mining and Trade, Mohammadreza Nematzadeh, and his Iraqi counterpart, Mohammad Shia al-Sudani signed a memorandum in July to create industrial parks on the border of each country, according to Mehr News Agency.
Over the past five years, Iran has expanded its industrial capacity with regards to its western neighbour, becoming the de facto supplier of dairy, fabric, leather and automotive products. Iraq also now imports Iranian natural gas for its southern cities.
Sudani said that Iraq intends to create five industrial parks on its side of the shared border if Iran is willing to cooperate.
The Iranian minister noted how despite moving ahead with integrating each other's central banks, so far no connections have been made between the two states: “Despite the agreement which the two countries’ central banks made last year, there has not been any progress in this regard,” Nematzadeh said.
Iran currently has one Free Trade Zone (FTZ) on the border of Iraq called Arvand which the country used to import goods through proxy during sanctions, including cars from South Korean automakers.
Iran’s industrial production grew 11.3% y/y in the first quarter of 2017, reflecting the better performance in manufacturing enterprises, CEIC data showed. Major industrial production includes oil, petrochemical products and automobiles.
14 IRAN Country Report November 2017 www.intellinews.com