WB sees impact of U.S. sanctions on Iran ‘wane’ in 2020-21

June 15, 2019

TEHRAN- The World Bank (WB) in its latest world economic outlook report “Global Economic Prospects”, predicts a 0.9 percent growth of gross domestic product (GDP) for Iran in 2020, indicating that the impact of the U.S. sanctions will ease in the mentioned year.

The bank predicts a -4.5 percent growth for the country’ GDP in 2019 but expects it to experience one percent of GDP growth in 2021.

“In Iran, the impact of U.S. sanctions is projected to peak this year, with growth resuming in 2020,” the report reads.

Meanwhile, global growth has also been downgraded to 2.6 percent, 0.3 percentage below the previous forecasts, reflecting weaker-than expected international trade and investment at the start of the year. 

Growth is projected to gradually rise to 2.8 percent by 2021, predicated on continued benign global financing conditions, as well as a modest recovery in emerging market and developing economies (EMDEs) previously affected by financial market pressure.

As for the Middle East region, growth is projected to fall to 1.3 percent in 2019 and to pick up to about 3 percent in 2020-21. 

“The projected pickup over the next two years is largely driven by an assumed rebound in activity in Iran as the impact of recent U.S. sanctions wanes,” the report said.

In its previous report, WB predicted a 1.1 percent GDP growth for Iran in 2020 and 2021.

The bank saw a -3.6 percent growth for the country’ GDP in 2019 but expected it to experience 1.1 percent of GDP growth in the following two years.

Global economic growth was also projected to slow to 2.9 percent in 2019 from a downwardly revised 3 percent in 2018 amid rising downside risks.

EF/MA

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