The Central Bank of Iran (CBI) released a report which showed that the national economy has witnessed a two-digit growth rate.
The CBI report said the country’s economic growth for the three quarters of the current fiscal year (March 20-Dec. 20, 2016) was 11.6 percent.
The national economy also managed to overcome acute problems that were created by the former administration.
Nonetheless, we cannot expect that economic growth would have continued in the fourth quarter. Even if growth has fallen in the remaining three months, the average rate for the whole year would still remain a two-digit figure.
This is the highest growth figure among world’s economies, and Iran will break the record for achieving the highest economic growth rate across the globe.
Presently, India has the fastest growing economy with a 7.5-percent growth rate. Ironically, Iran will surpass India by the brilliant figure that the CBI has announced.
The oil and auto-making sectors have played a significant role in achieving the two-digit economic growth.
Iran’s industrial production levels have exceeded the levels before tough anti-Tehran sanctions were imposed five years ago.
Presently, industrial output is at its highest level. Hence, the national economy has overcome recession.
The gross domestic product (GDP) seems to have surpassed the record registered before the imposition of sanctions. This is because economic growth in the current year has been beyond expectations.
Meanwhile, the Statistical Center of Iran has said that economic growth for the same nine-month period stood at 7.2 percent.
Such different figures for the same period have raised a serious question. Why are the economic growth figures published by the CBI and SCI different?
First of all, the CBI has compared this year’s economic growth with 2011. This is while the SCI’s report has considered the economic growth rate in 1997. That’s why their figures are different.
Second, the SCI often hastily announces reports pertaining to the economic growth rates.
The report released by the CBI is more accurate and detailed. This is because the CBI has broader ties with international bodies and it complies with global standards more comprehensively.
The government has ordered the CBI and SCI to consider the year 2011 for announcing their reports. But the order cannot be enforced in a short period of time.
The administration’s order will contribute to announcing more accurate and transparent statistics.
The year 2011 marks a year before sanctions were imposed against the Islamic Republic. The country recorded the highest GDP rate in that year.
*Saeed Laylaz is an economic analyst.