Economy, Domestic Economy

Role of Oil Revenues

Role of Oil RevenuesRole of Oil Revenues

If the government can carry on with the economic growth at the current pace, it will be able to meet the employment goals, Mohammad Nahavandian chief of staff of President’s Office said on Sunday. He added that economic analysts should “avoid exaggerating the role of oil revenues in the country’s economic growth.”

Fortunately the trend that started months ago is promising higher economic growth for the next fiscal year, Nahavandian said during a news conference. We should not exaggerate the importance of oil income for achieving the economic growth as the amount of oil incomes is not high compared to the amount of the country’s Growth Domestic Products (GDP).

Analysts, however, believe that such statements by government officials are mostly propaganda as oil revenues cover more than 40 percent of government expenditures during the current fiscal year.

Nahavandian also added that the economic recession imposed by the previous government led to the shutdown of several factories. Consequently, many jobs were lost. He vowed that the government is determined to decrease the unemployment rate by creating economic prosperity.