Domestic Economy

Rouhani Endorses CBI’s 4% Growth Report

Rouhani Endorses CBI’s 4% Growth ReportRouhani Endorses CBI’s 4% Growth Report

President Hassan Rouhani said on Wednesday that his administration has managed to get the country out of recession after two years of negative growth, citing a new report by the Central Bank of Iran that the economy grew by 4% in the first half of the current fiscal year.

"Based on the CBI's report released on late Tuesday, the country experienced economic growth of 4% in the first half of the current year (starting March 21)," President Rouhani said, addressing a crowd in the northeastern city of Birjand.

"Two consecutive years of negative growth have now come to an end, and the country is on a positive track," President Rouhani added, noting that "economic prosperity" will soon prevail.

According to the CBI's Tuesday report, the economic growth shows an increase of 6.4% compared to the same period last year.

The agriculture, oil, mining and industry sectors posted positive growth rates of up to 8.1% in total during the period, the report said.

In spring, the economy achieved positive growth (4.6%) for the first time after eight consecutive quarters.

Economic growth in 2012-13 was -5.8 percent excluding the oil sector and -6.8 percent including the sector. For 2013-14, the figure was -1.9 percent, including the oil sector, according to the CBI.

>>>Receding Inflation

Also during his speech, President Rouhani said that his administration has been able to curb inflation.  

“The inflation rate has now dropped to 17% from 40% 16 months ago when the current administration took office," he said, adding that his government has been able to tackle "the most challenging issue before Iran's economy."

According to the CBI data, the inflation rate in the month of Aban (ending November 21) stood at 17.8%.

>>>Oil & Gas

On falling oil prices in recent weeks, the president backed his administration' performance saying that it will be able to cope with the problem.

"Oil prices will not remain the same," Rouhani said, implying that oil will regain in the coming months.

He also condemned the conspiracies in the international oil market which resulted in the sharp fall of oil prices, making Iran lose nearly 50% of its annual revenues generated from the oil sales. "Certainly, all plots can be defused with unity and integrity," he added.

In similar remarks made on December 11, the president said the oil price fall was a result of conspiracy leveled by certain regional countries and beyond. "Iran and the people of the region will not forget such conspiracies, or in other words, treachery against the interests of the Muslim World," he said.

In another speech made in the eastern city of Birjand, President Rouhani noted that Iran has made remarkable progress in its gas and oil sectors. "100 million cubic meters of natural gas is expected to be produced by the end of the current year."