Private Sector Unlikely To Pull Down Budget Deficit

BMI View : Our downward revision of real GDP growth in Iran comes on the back of several key factors aside from the economic sanctions, including our expectation for lacklustre private sector growth. Recently the government has been heavily considering allowing the Revolutionary Guard to play a key role in Central Bank lending, thus widening its sphere of economic influence. We believe this would deter FDI and increase market inefficiencies during a time of increased budgetary strain.

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