Iran to receive substantial foreign investment in 2016: World Bank

March 15, 2016 - 0:0

TEHRAN- In its January 2016 Global Economic Prospects report with the theme of Spillovers amid Weak Growth, the World Bank said Iran will receive substantial foreign investment in 2016.

The report also said the removal of sanctions following the implementation of Iran’s nuclear agreement could increase Iranian oil exports by 0.5-0.7 million barrels per day by 2016, nearing the pre-sanctions level of 4 percent of global consumption.

In the Middle East and North Africa, Iran’s nuclear deal is pushing up regional growth, according to the report.

It said despite low oil prices, growth in the region will accelerate to above 5 percent in 2016-18. The improvement is predicated on a strong recovery in the Islamic Republic of Iran, the region’s largest developing economy. The international agreement to remove sanctions on international trade and financial transactions, beginning in 2016, is an important supporting factor for the Iranian economy.

The agreement opens the door for reintegration of the country into the global economy and the reinvigoration of its oil, natural gas, and automotive sectors.

The World Bank has also forecasted Iran’s gross domestic product (GDP) will grow by 5.8 percent in 2016, by 6.7 percent in 2017 and by 6 percent in 2018. 

Iran’s economy expanded by 1.9 percent in 2015, according to the World Bank’s report. 

It is while in its June 2015 report, the bank had predicted a 1 percent GDP growth for the country in 2015 and a 2 percent GDP growth in 2016.