Although many manufacturers faced increasing demand from consumers in the year 2018 in order to buy some of their goods, but now the gray shadow of deepening the stagnation of markets is heavier.
According to the Mehr News Agency , the year 2019 has put a lot of fears and hopes for the production and trade of manufacturers and trades. On the one hand, the price of many markets and reduced purchasing power have caused a lot of losses for many vendors and business owners, and on the other hand, the high cost of purchasing raw materials and some problems in transportation and financial transfers, has continued to pave way for production. In the meantime, what is hoped is the deepening of the recession in many markets, which has created a concern for Iran’s business environment.
As international reports acknowledge the current state of Iran’s economy and production, 2019 is not an easy year for the Iranian economy and, of course, many countries in the world. In the April, the World Bank‘s report announced in Oct. 2018, reconsidered the figures for 18 countries in the Middle East and North Africa (MENA), with prediction that the region’s average growth from 2019 to 2021 AD, would be 1.5-3.5%. (Click Here for 2018 Annual Report)
The April’s World Bank report, estimated Iran’s economic growth could have been 1.6% in 2018, down 0.1 percent compared to the October 2018 report. On the other hand, Iran’s Economic Growth has shrunk by 3.8% to 2019, the lowest and only negative economic growth among MENA’s economies, as the Economics Department of Tehran’s Chamber of Commerce reported.
According to the recent report of this international body, in 2019, Iran will experience more recession after experiencing a stagnation in 2018, and this would mean a deeper recession. The growth rates for Iran’s economy in the period from 2020 to 2021 are also estimated to be 0.9% and 1% respectively, which does not promise a significant improvement of Iran’s economy, suggesting that Iran’s economy is in poor growth trap.
Will Oil save Iran’s economy?
Meanwhile, reports from the World Bank have revealed the oil price outlook and pointed out in its report that Brent’s average oil price was $ 71 / barrel in 2018, up 31% from 2017 and the highest increase was in the first season of 2018. But, on the other hand, the strong growth in global demand and Iran’s rebellion, along with the disruption of Venezuelan oil production, has contributed to the increase in this rate.
The current trade balance of Iran:
As reported in the expert statements, Iran’s current trade balance, which has once been one of the top 10 world economies in terms of its high level, has gradually slowed down in recent years, to 3.5% of GDP in 2017 and is projected to reach less than 0.5% of GDP in 2018.
Accordingly, this variable is expected to equal zero in 2019 and still be less than 1% of GDP in 2020 and 2021, respectively, to the 0.5% and 0.9% of GDP levels.
Source: Mehr news
Why Should Be “A Paid-Subscriber” and “Advertiser”
Keeping an independent media in countries that impose limitations on self supporting media, will help to support the humankind’s freedom. If you believe it, please act to be a PRO-MEMBER by clicking “HERE“, or:
