By John Lee.
An Iranian Government spokesman has said that the government expects an economic growth of five percent in 2016, up from three percent this year, despite depressed oil prices.
“Given oil revenue only represents 30 percent of the budget, the decrease in oil prices has had limited impact on government spending, including on key infrastructure projects,” Bloomberg quoted him as saying in an interview.
He added that Iran’s ability to repatriate its frozen assets overseas after the removal of sanctions will offset the budget deficit and help the government shore up foreign currency reserves.
Iran’s improving economic outlook has already seen tax revenue jump by about 30% since the start of the Iranian year on March 21, compared with the same period the previous year.
“We don’t have much debt, and we have considerable foreign currency reserves. This creates more confidence for those who want to invest in Iran,” the spokesperson said.