Macroeconomic Forecast Iran

March 2007 | Macroeconomic Forecasts

Underpinned by expansionary fiscal policy, the Iranian economy looks set to grow robustly over the forecast period, registering economic expansion of 5.5% this year. However, political uncertainty and imprudent economic policymaking remain major risks to our forecasts, particularly at a time when Iran is running up budget deficits while other oil-exporting states are busily diversifying. With UNSC sanctions over its head along with the US imposed financial squeeze, investment is drying up. Growing unease within the establishment with economic policy is encouraging nevertheless, although we do not expect major changes under the current administration.

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