Mar 9, 2021, 11:48 AM
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Bright prospects for Iranian economy in upcoming Iranian New Year

Tehran, March 9, IRNA– Although Iranian economy has suffered great losses under world’s most severe sanctions and corona virus impacts, bright prospects are envisaged for national economy in the New Iranian Year with positive economic growth.

Keeping in mind that sanctions will be terminated and corona disease will be under control in the upcoming Iranian New Year, ideal economic growth is predictable for the next year.
According to an IRNA Economic Desk Tuesday report, macro-economy’s growth, or decline can be the sign of favorable or unfavorable economic situation, because it indicates a country’s products, and once the manufacturing sector is satisfactory there is also low unemployment rate, and the country’s economy is generally speaking, rolling.
After reaching the Joint Comprehensive Plan of Action (JCPOA), the observed openings in Iranian economy were noticeable, and likewise on the contrary, before JCPOA the country’s economic growth was not satisfactory.
JCPOA and economic growth during President Ruhani’s tenure
Before President Hassan Ruhani’s cabinet took charge and towards the ending years of former president Ahmadinejad, in the year 2011 the economic growth rate was 3%, that reached minus 7.7% in the year 2012, and when President Ruhani took charge it increased to positive 0.3%.
Although in the year 2013 the economic growth reached 3.2%, but in 2014 it entered the declining trend and dropped down to minus 1.6% again.
But after the JCPOA was signed, the Iranian economic growth rose up to 12.5% that was noticeable and relatively unprecedented. No one can deny the great achievements.
After that and when the important international agreement was challenged and sanctions lifted by the UN Security Council Resolution 2231 revived so that Iranian economic growth began to decline. In the year 2017 when Donald Trump’s administration began its work at the White House and talks about the US exit from JCPOA got stronger the Iranian economic growth fell to 3.7%, and in the years 2018 and 2019, it was respectively minus 4.7% and minus 7%.
Return of the sanctions, Trump’s maximum pressure policy, and the corona virus pandemic and its widespread effects in Iran made the Iranian economy weaker than ever before.
Yet, the latest economic growth statistics now show that the country’s economic status is gradually improving
According to the Iranian Statistics Organization’s fall season report the country’s economic growth was 0.8% last fall, and our non-oil economic growth was 0.2%.
Meanwhile, the country’s agricultural growth was 5.5%, mining and industrial growth was 3.7% and only the service sector’s growth showed negative 1.8%.
Perspective of economy in upcoming Iranian New Year, 1400
Production in Iran has been always faced with numerous challenges and obstacles during the past several years. Although there have been ups and downs, but the obstacles in the way of production have always prevented it from achieving a satisfactory outcome.
In any country economic planning and defining the major strategies in this field are among the government and political system’s responsibilities. In Iran, this policymaking and focus on production, especially in industrial and agricultural fields is of great significance and has a long background.
The US return to JCPOA and revival of that important international agreement, termination of sanctions and adopting an appropriate hard currency policy to match the newly emerged conditions will pave the path for favorable economic conditions during the upcoming Iranian New Year, 1400.
Particularly, the precious experience of non-oil economy, or at least reliance on the minimum possible oil income during the current year, 1399 (ending on March 23, 2021), has increased national self-confidence about the country’s move towards a non-oil economy.
Therefore, if the sanctions will be terminated and the petrodollars will enter the Iranian economy, relying on proper management on the one hand, the foreign currency market must be regulated and the national currency must regain its strength, and on the other hand parallel with dramatic falls of the foreign currencies’ value the producing sector will get stronger.
That is because major part of raw materials needed for the industrial sector are imported, and producing them inside the country is not cost-effective and justifiable. Therefore, by importing raw materials, the producing cost, will be lowered and both exporting those industrial products will be easier and their retail prices for the Iranian clients will be lowered.

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