Iran’s fifth development plan sees 12% inflation rate

September 14, 2009

TEHRAN - The fifth socio-economic development plan of Iran (2010-2015) has envisioned an average inflation rate of 12 percent (currently 20.2 percent) and economic growth rate of eight percent (currently at 6.8 percent) for the country.

The plan will be submitted to the parliament in late September, Mohammad-Qasem Hosseini, the director of the Presidential Office for Strategic Planning and Supervision Affairs said.
The Islamic Republic of Iran Broadcasting (IRIB) said the plan is mainly focused along the lines of justice-based progress.
Hosseni told IRIB that boosting the private sector's role in the national economic growth and increasing the cooperative sector's share to 25 percent in economic activities are some main objectives of the plan.
The fifth five-year plan has stipulated for reducing the unemployment rate to seven percent in 2015 from the current 11 percent through creating an average 990,000 jobs annually, Hosseini added.
“The plan has anticipated the value of non-oil exports would hit $110 billion by the end of the five-year period, nearly double of the growth predicted for the fourth plan.”
Regarding investments in the oil and gas sector, he said the plan has allowed up to $20 billion investment annually and that 20 percent of the oil revenues would be deposited in the 'National Development Fund'.
The average oil price has been calculated at $65 a barrel in the plan, Hosseini said, adding the reliance of annual budgets to oil incomes will reduce 10 percent per year to reach zero by the final year of the plan.
The fourth Five-Year Economic Development Plan (2005-10) set the guidelines for the development of international trade. The focus of the government has been on expanding trade with the global community and pursuing an active presence in international markets. Another area of focus has been on developing free trade zones and turning them into gateways to international markets.
Photo:
Shoppers at Tehran’s Bazaar e Bozorg. Iran plans bringing down galloping inflation and enhance economic growth in next 5th development plan