TEHRAN - The Institute of International Finance (IIF) said Iran’s economy could grow 4.4 percent next year despite the negative impacts of the pandemic if the sanctions are lifted.

If the sanctions are lifted by the end of 2021, Iran’s economy could expand 4.4 percent next year after an expected 6.1 percent contraction in 2020, the IIF, a trade body for the global financial industry, said in a report.

IIF also sees a growth of 6.9 percent in 2022 and six percent in 2023 for the Iranian economy, noting that if oil exports increase, Iran could see its foreign reserves rise to $109.4 billion by the end of 2023.

Garbis Iradian, IIF’s chief economist for the MENA region, told Reuters that the foreign direct investment inflows would increase progressively from this year’s $890 million to over $6.4 billion in 2025.

Assuming most sanctions could be lifted by late next year, FDI is likely to remain below $2 billion in 2021, with most of the money coming from China, Iradian said, adding: “Moreover, the coronavirus pandemic will limit FDI inflows in 2021.”

EF/MA