Central Bank of Iran Reports 4.5% Economic Growth for the First Half of 2017

The Central Bank of Iran announced that the economic growth for the first half of the year 1396 (2017) at constant prices of the year 1390 is approximately 4.5%. According to a report published on the official website of the Central Bank of Iran, the gross domestic product (GDP) in the first six months of the current solar year reached slightly above 3539 trillion rials. Details of this report indicate that Iran's economic growth in the first half of last year also had about a 10.3% growth compared to the same period in 1394 (2015). In simpler terms, although there has been economic growth during the first six months of this year, the rate of growth compared to the first half of 1395 (2016) is significantly lower. The reason for this is largely attributed to the oil revenues of the Islamic Republic of Iran. The details of the Central Bank's statistics show that the value added of the oil sector grew nearly 62% in the last half-year, but shows about 6% growth in the current half-year. In the winter of 1394, following the implementation of the nuclear agreement, Iran's oil sanctions were lifted, and the country's oil production and exports peaked last year. However, Iran's oil production and exports this year have not changed much compared to last year; only the price of oil has increased somewhat. The report adds that based on preliminary calculations, the value added of the oil sector in the first half of 1396 at constant prices of the year 1390 is estimated to be slightly above 791 trillion rials. The value added of the agricultural, industrial-mining, and services sectors increased by 4.2%, 4.5%, and 3.8%, respectively. The report also states that Iran's GDP grew by 12.5% during the past 12 months. This figure is also confirmed by the International Monetary Fund (IMF), which states that Iran's non-oil economic growth last year was only 3.3%, and when including oil, it reaches 12.5%. The IMF, in a report published in November of this year, adds that Iran's economic growth (including oil) for this year and next year will be 3.5% and 3.8%, respectively. This index, excluding oil, will be 3.1% for this year and 2.1% for next year. Regarding the size of Iran's economy, the IMF estimates Iran's GDP last year at $404.4 billion, which will reach about $428 billion this year.