News ID: 202382
Published: 1155 GMT October 14, 2017

Non-oil trade to play key role in Iran's economic growth

Non-oil trade to play key role in Iran's economic growth

In the latest report by the International Monetary Fund (IMF) there are strong signs of the significant role played by the non-oil sector in boosting Iran's economy.

The IMF has predicted a 3.5-percent growth in Iran's economy in 2017, Trend News Agency reported.

According to IMF's World Economic Outlook, Iranian economic growth in 2016 witnessed a huge surge of 12.5 percent. The report has projected the figure for the next year at 3.8 percent.

Many believe the huge surge of 2016 came following the implementation of Iran's nuclear deal with world powers which led to the removal of nuclear-related sanctions and a considerable hike in Iran's oil output.

The report assumed that the price of oil will average $50.28 a barrel in 2017 and $50.17 a barrel in 2018.

Considering OPEC's plans to extend cuts in oil output and the fact that Iran is not expected to add a huge amount to its output over the coming year, the country is very unlikely to see a considerable change in oil revenues in 2017 and 2018.

Earlier on Wednesday, OPEC reported that Iran's oil output registered a slight increase in September by 9,000 barrels per day month-on-month, and stood at 3.827 million barrels per day (mbd). During the sanctions era, Iran was producing 2.8 mbd.

Given these figures, it appears that non-oil sectors, including construction, agriculture and industry would play a crucial role in the country's economic growth over the current and the next year.

Iran's non-oil exports in the fiscal year which ended on March 20 was valued at $43.93 billion. The figure for the March-September period was $20.5 billion.

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