The World Bank Group produced a report entitled Global Economic Prospects for 2017. In this report, Iran was expected to grow by more than 5 percent in 2017. It is in the same report that Iran was projected to have had a Gross Domestic Product growth of 4.5 percent and a forecast of 4.8 percent and 4.6 percent was made for 2018 and 2019 in that order.
The growth of the Iranian economy is dependent on how well the government negotiates with foreign investors. Moreover, the government is also expected to continue showing good will in expanding the oil industry.
Be that as it may, the rate of growth of the Gross Domestic Product in Iran is said to have been enhanced in 2016 by enormous production of oil as well as positive growth of other sectors such as transport, trade, and the automotive industry. There was a visit to the country by a mission sent by the International Monetary Fund. The purpose of the visit was to perform an annual review of the economy of Iran.
Once the visit was concluded, a report was released that indicated that with a higher production of oil and increased exports, the country should experience a Gross Domestic Product growth of over 6.5 percent in 2017.
The growth of the Iranian economy is anticipated to hit 4 percent if the production of oil is normalized and the non-oil sectors remain vigilant and progressive.
The central bank of Iran should make sure that the exchange rate is unified since this issue has lagged behind for a number of years. The banking sector also needs to be under stricter regulation and supervision so as to bring the non-performing loans to a minimum and to increase the bank capital which is low.
The global economy is expected to grow by 2.6 percent in 2017 after being very low in 2016.
This was a result of the crisis that was experienced across the globe and Iran was one of the countries that had a nuclear crisis. This therefore means that a stable Iran is a stable global economy. Being a major economy owing to the vast oil empire, the Iranian government should ensure that policies are put in place to ensure that the economy does not drag the world economy to a halt or to a place of negative growth. It is time to empower low-income earners as well as poor households.
It is time to invest in the population even as the nation looks forward to implementing the strategies that have been put in place to bring it back to the world’s super economic powers. Extreme poverty should not be heard of in Iran. Families that live below the poverty line should be a thing of the past since the economy is strong enough to support them. Infrastructure development should be given a priority so that foreign investors will have an urge to invest in Iran.
In spite of the said positive economic development, the fiscal balance of the government recorded low readings as a result of the dismal performance of oil in the global market. The government therefore aims to give the private sector more focus so as to ensure that they create more jobs to cater for the looming unemployment if the same economic status remains. Youth unemployment is a continuous pressing issue since the population continues to grow where a majority of the population are under 30 years.