GDP
Expected to Shrink by 3.5% - IIF
Institute for International Finance, the Washington-based global
association of financial services, said today in its report on the Middle East
and North Africa that economic sanctions imposed on Iran have pushed the
country into recession. (Reuters, 10 December)
Crude oil exports have dropped sharply, the Iranian rial has plummeted
and inflation has soared this year, with GDP expected to shrink by 3.5 percent
in 2012/2013 Iranian fiscal year.
“With crude oil prices holding at around $110 per barrel, (Iranian) government
revenues from oil (which accounted for about half of its total revenues in
previous years) could drop by at least 40 percent,” the report said. (Reuters,
10 December)
IIF also forecast that inflation will average around 50 percent this
year, up from 26.5 in 2011.
The IIF report notes that the worsening economic conditions could have
serious political and social implications as Iran approaches mid-2013
presidential elections.
File photo: AP
File photo: AP
