Tehran and other world powers arrived at a conclusion that Iran should be expunged from the countries that have been sanctioned as a result of nuclear deals. The agreement was reached in 2015 sparking an array of reactions from various economists such as Ramin Rabbii. The country had been grappling with various negative impacts of the sanctions such as ballooning rates of inflation, shortage of hard currency, unstable growth, and restrictions on international banking. The agreement was seen as a major remedy to Iran’s recurring problems, which had made some of the firms to close down business or to scale down on the number of their employees. The country was in bad shape simply because of economic sanctions.
The economy of this Arab country has been rebounding remarkably year in year out. Some of the most tangible results have been the increased exports of oil. Oil exports have hit a near double since the sanctions were lifted.
In June 2016, the country reached an agreement that would see it have the ability to purchase passenger planes from Boeing, a renowned manufacturer of aircrafts.
This deal was worth around $17.6 billion dollars.
Some of the companies in Iran had been waiting for the moment so eagerly that they had even started thinking of how to invest outside the country once the ban was lifted. Turquoise Partners had been waiting for the lifting of the ban for a period of ten years.
Turquoise plans to improve asset management as well as brokerage business. It would also engage in road shows in Dubai and other areas in Europe so as to invite more investors to Iran.
The sanctions had caused Iran to have frozen international bank accounts. However, with the lifting of the ban, the country is now perceived as a major player in the global economy. The results of the removal of sanctions will show ripple effects across the globe where various local and international companies will enter the market and engage in oil business among others.
An Iranian economist, Mehrdad Emadi, says that there have been precautionary talks between significant Western investors and the government of Iran. The subjects that have been discussed are autos and oil and it is anticipated that there will be notable momentum in economic development.
The economy of Iran has been projected to grow by a maximum of 5 percent immediately after the lifting of the sanctions. The growth is further expected to shoot up to a maximum of 8 percent within a period of one year and a half. Such tremendous growth can only be compared to the tiger economies of Asia during the boom years. The European Union trade with Iran which was around $8.3 billion dollars could increase to up to four times the amount in the next year.
Sanctions in banking
The removal of shipping, financial, technology, and energy sanctions could take a little longer even if the nuclear agreement is smoothly implemented and agreed upon. This is because the four are a complex web that needs in-depth deliberations and compromise from the main players so as to assure the world of its peace. Iran is committed to world peace and so are the other players, but the removal of these sanctions will not be immediate neither will it occur within a fortnight.
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.