By Haniyeh Sadat Jafariyeh

Economy in a nutshell: key points, future plans

April 2, 2018

At the threshold of a new year, some of major economic indices of the ending year and the major plans for the upcoming one will be reviewed here.

Economic growth on positive track

Iran’s growth of gross domestic product (GDP) stood at 4.5 percent in the first half of the current Iranian calendar year 1396 (started March 21, 2017), based on the fixed prices in the Iranian year 1390 (ended March 19, 2012), Central bank of Iran (CBI) reported on January 18.
Based on the data released in February, by the Parliament Research Center, the country’s economic growth will reach 4.6 percent by the current yearend.

Unemployment inches down

Iran’s unemployment rate in autumn 2017, which corresponds to the third quarter of the Iranian calendar year, stood at 11.9 percent, down 0.4 percent compared to autumn 2016, the Statistical Center of Iran (SCI) announced. 
The jobless rate showed 0.2 percent increase, in comparison with the figure in summer.

Single-digit inflation rate 

The CBI announced that the inflation rate for the 12-month period ended on the last day of the 11th Iranian calendar month Bahman (February 19) hit 9.9 percent compared to the same period in the previous year.
It is while the SCI put the inflation rate for the 12-month period at 8.3 percent.

Oil revenues almost doubled 

Iran’s revenues from exporting crude oil and oil products reached 536.8 trillion rials (about $12 billion) in the first eight months of the current year, up 49 percent compared to the same period last year, IRIB news reported in January.
The country’s crude oil sales reached 402.4 trillion rials (about $9 billion) in the mentioned time span while the figure stood at 270.4 trillion rials (about $6 billion) in the preceding year, the report said.

Foreign trade notches up

The value of Iran’s non-oil trade with foreign partners reached $80 billion during the first 10 months of the year ended on January 20, up 12 percent from the same period last year. In terms of weight, the country traded 135 million tons of goods during the mentioned 10 months, registering a 0.4 percent rise year on year.

Budget deficit widens

The government’s overall revenues during the first nine months of the year stood at 340.3 trillion rials (about $7.2 billion), registering a rise of 27.8 percent year on year, while its spending hit 725.7 trillion rials (about $15.4 billion) during the period to record a year-on-year 35.6 percent growth, the CBI reported in February.
As a result, the government had to issue 74.8 percent more bonds in the nine-month period compared with the corresponding period last year to cover its widening deficit of 385.4 trillion rials (about $8.2 billion). As much as 601.4 trillion rials (about $12.8 billion) worth of bonds were issued during the period.

New Year plans

As per the next year’s national budget bill approved by the parliament (Majlis) on February 23, the main focus of the government - on its way to improve domestic economy - is to reach sustainable economic conditions through reducing poverty, preserving the positive trend of economic growth, creating sustainable jobs relying on the private sector and cooperatives, making domestic economy competitive, reducing the government’s share in economy, paying specific attention to transport, transit of goods and energy, mining, petrochemicals, housing, tourism and knowledge-based services and industries.

HJ/MA/MG

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