By John Lee.
The World Bank expects the Iranian economy to grow 5.8 percent in 2016, according its flagship “Global Economic Prospects“ report released yesterday.
This follows an estimated growth of 1.9 percent last year.
Growth rates of 6.7 percent and 6.0 percent are predicted for 2017 and 2018 respectively.
The report argues:
“Crude oil production in the Islamic Republic of Iran is expected to increase rapidly following the removal or suspension of sanctions, by an estimated 0.5–0.7 million barrels per day (mbd) in 2016 (World Bank 2015o), up from the 2015 level of 2.8 mbd.
“The potential increase in capital inflows in the post-sanctions environment could help expand exploitation of proven natural gas reserves, which are the largest in the world.
“The release of frozen Iranian assets currently overseas will also boost the economy.
“The ramping up of oil production over time, contingent upon significant infrastructure repair and investment, could help keep global oil supply high, and prices low, over the medium term.“
(Source: World Bank)