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Monday, December 10, 2012

Sanctions Push Iran into Recession

GDP Expected to Shrink by 3.5% - IIF


Institute for International Finance, the Washington-based global association of financial services, said today in its report on the Middle East and North Africa that economic sanctions imposed on Iran have pushed the country into recession. (Reuters, 10 December)
Crude oil exports have dropped sharply, the Iranian rial has plummeted and inflation has soared this year, with GDP expected to shrink by 3.5 percent in 2012/2013 Iranian fiscal year.
“With crude oil prices holding at around $110 per barrel, (Iranian) government revenues from oil (which accounted for about half of its total revenues in previous years) could drop by at least 40 percent,” the report said. (Reuters, 10 December)
IIF also forecast that inflation will average around 50 percent this year, up from 26.5 in 2011.
The IIF report notes that the worsening economic conditions could have serious political and social implications as Iran approaches mid-2013 presidential elections.

File photo: AP
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7 comments:

  1. AnonymousDecember 10, 2012 at 2:38 PM

    3,5% growth without Crude oil export ????!!!
    If it is true, then
    I love Recession.
    Thank you for this great news Mr uskowi

    Iran is on right track

    ReplyDelete
    Replies
    1. AnonymousDecember 10, 2012 at 3:45 PM

      @ 3:38 You see there the blinding power of ideology and wishful reading - sad ...

      Delete
    2. AnonymousDecember 10, 2012 at 3:53 PM

      "Crude oil exports have dropped sharply, the Iranian rial has plummeted and inflation has soared this year, with GDP expected to ------shrink----- by 3.5 percent in 2012/2013 Iranian fiscal year."

      Delete
    3. AnonymousDecember 10, 2012 at 5:01 PM

      poor, poor Anon 2;38 too dumb to know the difference between growth and shrinkage.

      Delete
  2. Nader UskowiDecember 10, 2012 at 4:05 PM

    GDP shrinking by 3.5%!

    ReplyDelete
  3. AnonymousDecember 10, 2012 at 6:22 PM


    Looks like Anon 2:38 PM only knows that when a fat mullahs belly is full equals growth and when a little rumbling equals shrinkage.LOL!

    ReplyDelete
  4. AnonymousDecember 10, 2012 at 7:03 PM

    Below was according to IMF report last month:

    "IMF figures released last month forecast an economic contraction in Iran of 0.9 percent this year, and mild growth of 0.8 percent in 2013.
    The figures compare to 2.0-percent growth in 2011 and 5.9 percent in 2010."

    I always Wonder about economic news and forecasts.

    ReplyDelete