Iran Economic Growth Under 0.5 Percent – Majlis Research Center

Majlis’ Research Center has published figures that show Iran’s economic growth in the 12-month period ending in January 2013 to be 0.39 percent, Mehr News Agency reported today.

The figure reported by Majlis research center is the lowest rate of economic growth in the region and 164^th in the world. President Ahmadinejad has been insisting that the rate was over 10 percent, and his minister of economy had put the rate at 5 percent.

This report also notes that while the Central Bank of Iran had put the country’s inflation in August at 21 percent, Iran had the highest inflation rate in the region.

File photo: Tehran Bazaar (Fatemeh Behboudi/Mehr News Agency)

Iran: Economist Forecast for 2012

The Economist in its annual forecast of the world economies, predicted Iran’s rate of economic growth for 2012 to be at 2.2%. In the region, Libya and Iraq are predicted to have the highest growth rates at 13.6% and 10.9% respectively.

The annual rate of inflation for Iran is predicted to be at 16.5%, one of the seven countries with double-digit inflation rate, led by Venezuela at 30.6%.

Photo: The Economist, the New Year edition

Rial Devaluated by 11%; Inflation Rising; Stagnant Growth Rate

The Central Bank of Iran (CBI) on Wednesday devaluated the national currency rial by nearly 11% against the dollar. CBI announced the rise in official exchange rate from 10,590 rials to 11,710 rials per US dollar. The unexpected move might signal CBI’s attempt to enforce a single exchange rate against the dollar. In exchange markets, the dollar is trading at higher value than the official rate.

Meanwhile, the statistics released by CBI showed a 26% rise in prices last month compared to the same period last year. The sharp rise in inflation rate in the month of Ordibehesht (ending 21 May) pushed the annual inflation rate to 17% [Donya-e Eqtesad, 9 June].

In other economic news, the World Bank today concurred with IMF on Iran's economic growth rate of one percent in 2010 and forecast a zero percent GDP growth for 2011. The World Bank also predicted a 3% growth for 2012.

Iran Rejects IMF Report on Economic Growth

Iranian Minister of Economic Affairs and Finance Shamseddin Hosseini today rejected the latest IMF forecast on Iran’s economic growth, calling it “illogical and surreal.” The International Monetary Fund had reported earlier that Iran's economic growth in the year 2011 will fall to zero percent.

“The figure released by the International Monetary Fund is mostly based on the assumption that the West's measures against Iran have affected our economy,” Hosseini said [ISNA, 25 April].

Hosseini did not offer his own forecast on the country’s economic growth rate. Since 2009, the Central Bank of Iran (CBI) has stopped publishing its annual reports on the country’s economic growth rate, making the IMF reports the only source of information on the actual and forecasted growth rates.

Iran GDP at $450 Billion – Ahmadinejad

Iranian President Mahmoud Ahmadinejad said today that Iran’s Gross Domestic Product (GDP) has reached 500 trillion toumans (450 billion dollars) [IRNA, 28 February].

Iran 21st in GDP

Iran will rank 21st among 181 countries in terms of gross domestic product (GDP), overtaking the Netherlands and Thailand in 2007, the IMF reported on Thursday in its World Economic Outlook.

The report predicted that Iran’s inflation rate will reach 19% in 2007.

The rapid growth in GDP and inflation rates are both the outcome of the country’s rising oil revenues.