IMF: Small contraction in Iranian economy
The Iranian economy has seen only a minor contraction due to Western oil sanctions, according the the IMF
"The projection that we have shows small contraction in Iran economy during 2012 ... and an increase in inflationary pressure in the same period," the IMF's head of Middle East and Central Asia, Masood Ahmed, told AFP in Dubai where he presented the Fund's Regional Economic Outlook report.
IMF figures released last month forecast an economic contraction in Iran of 0.9 percent this year, and mild growth of 0.8 percent in 2013. The figures compare to 2.0-percent growth in 2011 and 5.9 percent in 2010.
"This deterioration reflects both lower oil production, which is in part because of the external constraints and the spillover impact of that on the rest of the economy," he said.
According to IMF projections, Iran's oil exports have dropped to 1.25 million barrels per day this year, compared with 2.14 million bpd last year.
He pointed out that the drop took place even though "other parts of the economy have done well, such as agriculture." "It is important to remember that the economy is quite a diversified economy in Iran. The oil as a share of the GDP is not as large as other oil exporters," Ahmed said.
Agriculture contributes some 10 percent of the Islamic republic's GDP, while industry, including oil, accounts for about 40 percent, and services amount to about half the output.
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?