Iran Economy Could Rebound to 4.4% Growth by Next Year: IIF
TEHRAN (Tasnim) – Iran’s economy could grow 4.4% next year if US President-elect Joe Biden lifts the sanctions against the country, the Institute of International Finance (IIF) said.
Biden has pledged to rejoin the 2015 nuclear deal between Tehran and world powers from which outgoing President Donald Trump withdrew in 2018.
The IIF, a trade body for the global financial industry, said that if the United States lifted most of the economic sanctions on Iran by the end of 2021, the economy could expand 4.4% next year after an expected 6.1% contraction in 2020, Reuters reported.
It would then grow by 6.9% in 2022 and 6% in 2023, the IIF said, adding that if oil exports increase, Iran could see its foreign reserves rise to $109.4 billion by the end of 2023.
Tehran has spoken optimistically about the return of foreign companies under a new US administration.
Garbis Iradian, IIF’s chief economist for the MENA region, said foreign direct investment inflows would increase progressively from this year’s $890 million to over $6.4 billion in 2025.
Assuming most sanctions could be lifted by late next year, FDI is likely to remain below $2 billion in 2021, with most of the money coming from China, Iradian said, adding, “Moreover, the coronavirus pandemic will limit FDI inflows in 2021."
About 90% of Iran’s official reserves are frozen abroad due to the US sanctions.