Iran's Central Bank Reports Economic Growth Halved This Spring

Iran's Central Bank, in its latest report, states that the country's economic growth in spring this year was 3.2 percent, which is nearly half of the economic growth in the same period last year, which was 5.7 percent. The significant drop in economic growth this spring is primarily due to the halving of the value added from the oil sector, which was 16.5 percent last spring and about 9.5 percent this spring. Previously, the International Monetary Fund (IMF) and the World Bank had predicted that the pace of Iran's economic growth would sharply decline this year and continue to fall next year. According to the IMF's estimates, Iran's economic growth last year was 4.7 percent, but it is expected to drop to 3.3 percent this year and 3.1 percent next year. The relatively significant economic growth in Iran last year was attributed to a substantial increase in oil production and exports, as well as a surge in government spending; neither of these factors has a direct correlation with the welfare of the people or the prosperity of the market and industries in the country. On the other hand, OPEC statistics indicate that Iran's oil production growth has nearly stalled since mid-spring this year, suggesting that the value added in the oil sector in Iran is expected to significantly decrease compared to the same period last year. The twelfth and thirteenth governments in Iran had targeted an eight percent growth rate based on the sixth development plan, which was not achieved, and the seventh plan, which is set to be implemented for five years starting this year, again emphasizes the need for eight percent economic growth. Masoud Pezeshkian, the President of Iran, announced on September 1 that achieving an eight percent economic growth would require 200 billion dollars in investment. He added, 'The total money we have in the country is more than 100 billion dollars. Therefore, we need 100 billion dollars in foreign investment, which relates to our connections with the outside world, with neighbors, and with Iranians abroad.' Meanwhile, according to UN statistics, Iran attracted less than 1.5 billion dollars in foreign direct investment last year.