Economy, Domestic Economy

Growth Yet to Reach Private Sector

Growth Yet to Reach Private SectorGrowth Yet to Reach Private Sector

Private sector experts believe that despite the central bank’s growth report this month, small industries have not yet exited recession.

The Central Bank of Iran released a report last week showing that the economy grew by 4 percent in the first half of the fiscal year. Earlier, the CBI confirmed that the economy grew by 4.6 percent in spring, ending eight consecutive quarters of negative growth.

Mohammad Ali Seyed Abrishami, director general of Iran’s Small Industries and Industrial Parks Organization (ISIPO) said on Wednesday that “economic growth is most visible in the industrial units run by the government,” and that “small industries are still battling with recession.”

“There has been a twofold increase in car manufacturing during the past 9 months,” he said, adding that “steel production and petrochemical industries have seen growth too,” citing the two industries as two major sectors run by the government.

According to the CBI report, the agriculture, oil, mining and industry sectors collectively posted a growth rate of 8.1 percent in the first half of the year.

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.