Industry-Wide Growth Momentum Continues

The Iranian public will gradually begin to tangibly feel the effects of sanctions relief as a result of the nuclear accord, as all major industries register continued growth, the Central Bank of Iran's deputy for economic affairs said.

"We have witnessed good growth in the non-oil sector and it has reached 4.6%," Peyman Qorbani also told IBENA, adding that some sectors are still registering negative growth rates.

"You may ask someone active in the housing sector about growth and boom, and the answer will be negative, but ask the same question from businesses in the metals industry and the answer will be positive," he added.

Based on accepted definitions of economic growth, boom and recession, Iran's GDP in the previous fiscal year (ended March 20, 2017) was in a state of boom for the first three quarters.

Qorbani noted that the effects of economic growth will become evident in the day-to-day lives of the public "with a delay", saying one indicator was the 2.4% growth in the private sector during the period.

According to the CBI official, the growth rate of industrial sector will persist and an all-encompassing momentum will happen in all industries.

This means that the beleaguered housing sector, stuck in a five-year recession, would also be able to recover.

As Qorbani outlines, "a trend began in the sector last year and we hope to keep up a positive movement this year".

He added that growth in investment must also be factored in as a major indicator.

"Although investment growth was negative last year, it must be noted that machineries experienced a significant 10.1% growth during the first nine months of the previous fiscal year," he said.

Qorbani noted that the economic trajectory will be positive this year and needs a boost for its effects to become visible in people's welfare, production and job creation.

"Even though the country put behind a period of excessive recession, extraordinary price fluctuations, an increase in currency prices and a heavy decline in the purchasing power of people as a result of international sanctions, it is yet to achieve the purchasing power of 2011," he said.