Growth Forecasts Revised Down As Sanctions Start To Bite

BMI View : The latest round of economic sanctions against Iran has prompted us to revise down our real GDP growth forecasts, which now stands at an estimated 1.2% in 2010/11 improving only modestly to 1.9% by 2014/2015. While our outlook for higher oil and gas prices will form the main driver of this growth, discordant economic policies and the lack of strategic government spending prior to the sanctions will continue to limit its ability to achieve higher growth rates in the medium term.

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