Iran’s industrial sector is estimated to grow 7-8% in the current Iranian year (started March 20), the deputy minister of industries, mining and trade said. “In Iran, the industrial sector is estimated to grow 2-3 times the overall growth rate,” Hassan Abouei was quoted as saying by Mehr News Agency. As for the last Iranian year, however, the Iranian economy, excluding the oil sector, grew 0.9% as growth in the agricultural sector negated the contraction of industrial output, according to the Statistical Center of Iran. Economic sanctions took a toll on manufacturing, resulting in a 2.2% contraction during the year, as weak consumer spending and lack of adequate financing ate away the output. Low productivity and poor consumer spending due to suppressed purchasing power also tightened the screws on the industrial sector. Agriculture held Iran from dipping back into recession with a 5.4% rise in output. The services sector stalled, as it edged up output by 0.2% compared to a year before. Still, services were better off than industry. The IMF predicts a GDP growth of 4% for the Iranian economy this year.
