Iranian economy on the road to recovery

Referring to economic indicators, the CBI deputy governor emphasised that Iranian economy is en route to soundness.
CBI deputy governor visits IMF staff

CBI- Referring to economic indicators, the CBI deputy governor emphasised that Iranian economy is en route to soundness. "Iranian economy experienced an unprecedented growth last year", he said, "single-digit inflation and relative stability in the foreign exchange market testify its potentials and predictability".

According to CBI PR, Akbar Komijani addressed a meeting attended by IMF staff, CBI officials, experts from the ministry of economic affairs, Majlis Research Centre as well as Management and Planning Organisation and said, "Iranian economy faced hard conditions of stagflation, unemployment and fiscal deficit at the beginning of the 11th administration. The economic growth rate was negative and inflation ascended to +40%. However, at the end of the administration term, we observed a new picture of the economy with a satisfactory performance and recovery of macroeconomic indicators."

"We have a fair and stable exchange rate which is far from severe fluctuations", he continued, "This has been one of the main goals of the central bank which was realised through proper policies accompanied by nuclear deal and subsequent positive expectations".

He mentioned banking reforms as the main macro-policy of the central bank. "Reforming asset quality and

structuring government debts to the banking system are among the main priorities of both the government and the central bank", said he, "Fortunately, some positive measures have been taken so far. For example, sub-article 35 of the Budget Law provides that foreign assets of the central bank to be revalued to cover for bank capital and structuring government debts. Prominent steps have also been taken to improve the quality of the assets and liabilities of bank balance sheets".

Catherina Perfield, the head of IMF team, praised the central bank for its efforts to discipline the unauthorized institutions and added, "Iranian growth rate is one of the highest in the world, though the non-oil sector still needs improvements. In our Article 4 report, we aim to offer professional recommendations for further improvement of economic conditions and realisation of development for all".

She considered stability of macro-economic variables as a requirement for economic growth. "Some reforms in the areas of banking, finance, labour market and legislations are also crucial", she continued.

It should be reminded that the article 4 report is due to be published in December 2017.

Publish Date: Oct 24, 2017