Business environment improves in last calendar year’s Q4

May 8, 2021 - 15:49

TEHRAN - Iran’s Business Environment Index improved by 0.13 percent in the winter, the fourth quarter of the previous Iranian calendar year (December 21, 2020-March 20, 2021), data released by the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Research Center showed.

As reported by the ICCIMA portal, the country’s Business Environment Index reached 5.80 points in Q4, compared to the autumn’s 5.93 points.

The index, calculated by ICCIMA, measures the business friendliness of Iran’s economy, with 10 indicating the worst grade, meaning that the growth of the index is indicative of a deteriorating business environment.

Based on the mentioned data, unpredictability and price changes of raw materials and products, difficulty of financing and instability of business policies, rules and regulations were the factors which contributed the most to a high business environment index.

According to the ICCIMA Research Center, the average production capacity of the country's enterprises in autumn was 42.72 percent, which compared to the last fall (40.80 percent), increased by approximately two percent.

The impact of the coronavirus pandemic on the country’s business was reported to be 6.3 percent in the mentioned quarter, the report said.

Earlier this month, the Industry, Mining, and Trade Ministry’s Business Environment Improvement Committee held a meeting to discuss the ways for realizing the current Iranian calendar year‘s (started on March 21) motto and to ensure improvement of the country’s business environment.

Removing barriers in the way of production and monitoring the implementation of laws and regulations were mentioned in the meeting as the main requirements for the realization of the current year’s motto and for improving the country’s business environment.

According to Hamidreza Fouladgar, head of the ministry’s Business Environment Improvement Committee, monitoring the execution of existing regulations such as the law of improving the business environment, and the law on removing barriers to production are the most important factors that contribute to the improvement of domestic production.

EF/MA

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