Iran heading for major economic spurt in short term

EghtesadOnline: The Iranian government has taken special measures which are expected to give an economic boost to the country's economy in a few months, said Mansur Moazzami, chairman of board of directors of Industrial Development and Renovation Organization (IDRO).

News ID: ۷۳۷۲۳۰

28 September 2016

Over 160 trillion rials (about $5 billion) has been invested to help some 10,000 companies with liquidity problems to get back on their feet, he said, Trend's correspondent reported from the event September 27.

“I am sure that in the coming six months this will produce considerable growth in industry and in economy," Moazzami noted.

The International Monetary Fund has predicted that Iran’s gross domestic product will grow 5 percent in 2016-2017, reports ILNA.

Iran aims for an economic growth of 8 percent by 2022. To make that possible, it will need a $230 billion worth of investment, which the government intends to acquire through the public sector, National Development Fund, capital market, banking facilities, private sector, domestic resources of governmental companies, and foreign resources.

According to the United Nations Conference on Trade and Development (UNCTAD), Iran’s annual inward FDI (foreign direct investment) was $2.408 billion on average during 2005-2007, while this figure for 2011-2014 was $3.523 billion, despite the fact that the country was under sanctions.

Iran was freed from sanctions in January 2016. Three months later, the government announced it had authorized $3.4 billion investment since.

Elsewhere in his remarks, Moazzami said Iran considers special privileges for foreign investors to help them start businesses in Iran, including tax exemption, insurance policies, real estate facilities, discount on feed, and the right to export.

On February 1, Iranian Deputy Minister of Economy Mohammad Khazaei said Tehran was considering luring $25 billion foreign investment for development projects.