Iran’s economy grows for 4th year: World Bank
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The World Bank revealed that Iran's economy expanded by 5% in real GDP from April to December 2023 compared to the same period the previous year.
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People walk through the Tajrish traditional bazaar in northern Tehran, Iran, Tuesday, July 2, 2024 (AP)
The World Bank announced on Tuesday that the Iranian economy has achieved strong growth for the fourth consecutive year, driven primarily by a significant recovery in the oil sector despite ongoing economic sanctions.
In its Spring 2024 report, the World Bank revealed that Iran's economy expanded by 5% in real GDP from April to December 2023 compared to the same period the previous year. This growth marks a continuation of the positive economic trends observed over the past three years.
The report mentioned that the oil sector played a crucial role in this economic expansion, showing a robust growth rate of 16.3% during the first nine months of the 2023/2024 fiscal year. The increase in oil production and exports was instrumental in driving the overall economic performance.
Read more: Iran signs $2 billion oil contracts
The non-oil sector also demonstrated resilience with a 3.5% growth rate driven by strong domestic demand and a boost in exports. The services sector contributed notably to this growth, reflecting a steady economic recovery.
The report also noted that moderate rainfall, supported by government initiatives, had a positive impact on agricultural production, albeit the growth was minimal.
However, the construction sector faced challenges that tempered its growth. The sector grew by 3.1%, hindered by issues such as limited financing and rising production costs.
Overall, the growth observed continues a positive trend from previous years, indicating a period of recovery and resilience in the Iranian economy despite the strain imposed by US sanctions.
