World Bank: Iran's economic growth reaches 5% despite sanctions

Pars Today - Despite sanctions, Iran's economy has grown for the fourth consecutive year, with the World Bank reporting an economic growth rate of over 5% in its latest report.

Since the early 1990s, the United States, the European Union, and other developed economies have imposed hundreds of economic sanctions on other countries.

Iran's enemies have also been trying to harm the country's economy through sanctions, particularly since the Islamic Revolution, due to Iran's independent and anti-colonial stance.

These governments have not spared any industry from sanctions. However, Iran has continued its path of self-reliance and has managed to maintain its growth rate despite all the challenges. One of these challenges is fighting unemployment alongside increasing the economic growth rate.

In this regard, according to Pars Today, based on the World Bank's report, Iran has achieved an economic growth rate of over 5% in the past three years, despite regional geopolitical tensions, and has reduced unemployment to 7.4%.

The report adds: Iran's real GDP growth rate reached 5% in the first nine months of 2023, driven by growth in the oil and services sectors. The oil sector, which accounts for 8.6% of GDP, grew by 16.3% annually. The non-oil sector also grew by 3.5% annually, driven by domestic demand and exports to some neighboring countries.

The World Bank report further states: Iran's economic growth has led to improved employment statistics. The employment rate in 1402 increased by 3.3% compared to the pre-COVID-19 pandemic level, and the unemployment rate reached a record low. In the past four years, Iran's industrial and services sectors have experienced the highest employment growth rates of 6.3% and 4%, respectively.

The World Bank predicts that Iran's GDP growth rate will average 2.8% per year from 2024 to 2025, although global demand, sanctions, energy shortages, liquidity constraints, capital accumulation, and geopolitical tensions will affect the growth outlook.

MG

Key terms: US sanctions against Iran, Iran's economic growth, Iran's economic situation, World Bank, Iran's unemployment rate