- In its latest report, IMF has predicted Iran’s real GDP growth to fall somewhere between 0.5% to -0.5% in 2015-16. Issues, including the sharp decline in global oil prices, tight corporate and bank balance sheets along with the investment decisions made ahead of the expected lifting of sanctions have been named as factors slowing down the economic activities since the fourth quarter of 2014-15. In addition, the report emphasizes on the bright prospect in 2016-17 as the result of sanctions removal as the main factor and higher oil production, lower costs of trade and financial transactions along with restored access to foreign assets. However, the report refers to issues which can mitigate the predicted upward trend, including the prudent monetary policy and the authorities’ goal to achieve a single digit inflation rate by the end of 2016-17.
- Concurrent with foreign investors’ interest in Iran’s capital market after the lifting of international sanctions in early 2016, economic practitioners are addressing the lack of proper legal and financial structures as the impediment to attracting foreign capitals to the country. Although well-known and well-structured banks can act as a proper option, these experts believe that strengthening investment banks can be one of the steps to conducting such reformations.