I.O.B summit to promote Iran’s economy in world

January 2, 2016

TEHRAN- Iran is scheduled to hold an international summit on January 28 and 29 to introduce opportunities to the foreign countries for expand their economic cooperation with the Islamic Republic.

The summit titled “Iran Open Business (I.O.B)” aims to bolster the country’s ties with the world in trade, financial, commercial, industrial, mining, development, and tourism sectors, the Tasnim News Agency reported on Friday.

Ambassadors, commercial attachés and representatives of economic entities from many countries will attend the gathering which will be held in Tehran.

The event will be an appropriate opportunity to introduce Iran’s investment attractions to the foreign entities.

The recent agreement between the P5+1 and Iran allows for the removal of most economic sanctions and for a significant improvement in Iran’s economic outlook, the International Monetary Fund said in its October report on regional economic outlook for Middle East and Central Asia.

The report said the sanctions relief will bring three key benefits for Iran. First and foremost will be a positive external demand shock, both for oil and non-oil exports. In addition, the decline in the cost of external trade and financial transactions will act as a positive terms-of-trade shock (lowering the price of imports and raising the price of exports). Finally, restored access to foreign assets and higher oil exports should also result in a positive wealth effect.

Taken together, these three shocks are likely to create a significant improvement in the outlook for the Iranian economy in the years ahead, outweighing the adverse effects from the sharp decline in global oil prices over the past year. 

Estimates of the growth impact, based on analysis of the Iranian economy, suggest that domestic economic activity could accelerate markedly following sanctions relief. Real GDP growth could rise up to 5½ percent in 2016/17 and 2017/18, while hovering around 3½–4 percent annually in the years after. 

MA/