Iran’s GDP grows 1% in 6 months: official

November 3, 2015

TEHRAN- Iran’s Management and Planning Organization Director Mohammad Baqer Nobakht announced that the country’s gross domestic product (GDP) grows one percent in the first half of the current Iranian calendar year (March 21-Septemebr 22), compared to the same period of time in the previous year.

The official said the growth is not still enough, although the national economy had contracted by 6.8 percent in the six-month period two years ago, the Mehr News Agency reported on Monday.

The sectors of agriculture; industry and mining; and services experienced 57 percent, 1.1 percent, and 0.9 percent growth, respectively, in the country during the first half of the current calendar year.

The government has planned to put its economic stimulus plan into effect in the second half of this Iranian year; Nobakht stated; adding that both Central Bank of Iran (CBI) and Management and Planning Organization are committed to take necessary measures for expanding the economy.

On October 17, Iranian Finance and Economic Affairs Minister Ali Tayyebnia, Management and Planning Organization’s Director Mohammad Baqer Nobakht and CBI Governor Valiollah Seif unveiled the country’s new economic stimulus plan. 

The economic blueprint consists of a total of 30 articles including providing seven-year car loan options, reducing interest rate of banking deposits and loans, and pumping 75 trillion rials (about $2.158 billion) into the country’s development budget in a fortnight.  

According to Nobakht, the stimulus will remain in effect for a time span of six months with a focus on curbing inflation and spurring economy. 
On October 27, Seif said the country’s economic stimulus plan will come into effect since the middle of current Iranian calendar month of Aban (October 6).

While Iranian President Hassan Rouhani’s economic team has been able to drop inflation from 40 percent to 15 percent, there are still major problems that have been unaddressed.