World Bank reports reveal that the Iranian economy witnessed a growth rate of over 3-percent last year. The expansion is mainly attributed to sub-sectors of the economy. Services played a major part, having made a significant comeback after COVID impacted the industry. Ehsan Keivani tells us more. 

Earlier this month, the World Bank released its Global Economic Prospects report. It revised Iran's economic growth forecast marginally higher for 2022, due to the easing of COVID restrictions and the gradual recovery of the oil sector. The report states Iran's Gross Domestic Product – or GDP – is going to register growth of around 2.4-percent in 2022. This comes after a turbulent time for the country economically.

HABIB ANSARI SAMANI University Professor "Although the country has seen continuous negative growth rates for years, positive growth is easily attainable if there is political stability and international developments work in Iran's favor. With this, growth of around 2 to 3 percent is feasible. But it's possible to see even more as Iran's economy has a lot of potential."

Experts say this potential will most likely be found in the manufacturing sector. However, they believe the government, which largely controls the economy, will need to set the right conditions.

EHSAN KEIVANI Yazd, Iran "Together with statistics and official figures, the industry sector can be a good criteria to evaluate a country's economic growth because, at the end of the day, the service sector and the manufacturers are directly engaged."

Iran's industry sector has been among the hardest hit by US-led sanctions. The import of raw materials is very challenging whilst the export is almost impossible due to limitations in accessing the global banking network. Domestic shortages and sharp fluctuations of foreign currency exchange rates have also had a negative effect. Experts say medium-sized industries and the service sector can be hopeful if the upstream industries are led on the right track and given government support.

MAJID NAKHKESH Textile Manufacturer "Over the past few years, we've had numerous problems, including low purchasing power, high inflation, and the impact of the pandemic. These have all substantially reduced our sales which, 10 years ago, was unprecedented."

The next few months and a clearer outcome from the Vienna nuclear negotiations could be decisive for the future path of Iran's economy. Ehsan Keivani, CGTN, Yazd, Iran.