Real GDP in Iran is expected to have another recessionary year with -3.8% growth in 2019, after a 1.6% contraction in 2018 as oil output falls in part due to the US sanctions.
The World Bank has downgraded Iran's economic growth estimates and forecasts in a new report.
The report entitled "Reforms and External Imbalances: The Labor-Productivity Connection in MENA (Middle East and North Africa)", put the Islamic Republic's real GDP growth for 2018 at -1.6%.
The World Bank has forecast that the rate will further contract to reach -3.8% in 2019 before an expansion of 0.9% in 2020 and 1% in 2021.
Its previous report entitled "World Economic Prospects", which was published in January, read Iran's GDP was bracing for further contraction in 2019 to reach -3.6% after experiencing an estimated -1.5% in 2018 before stabilizing in the positive territory at 1.1% in 2020 and 2021. The figures in that report for 2018, 2019 and 2020 in turn showed -5.6%, -7.7% and -3.1% changes compared to those of June 2018.
The new report also estimates Iran's real GDP per capita growth stood at -2.6% in 2018. Forecasts for 2019, 2020 and 2021 have been put at -4.8%, 0%, and 0.1% respectively.
It estimates Iran's current account balance at 0.5% of GDP in 2018. Forecasts for 2019, 2020 and 2021 have been put at 0.0%, 0.5% and 0.9% of GDP respectively.
The country's fiscal balance estimate has been put at -4.8% of GDP. Forecasts for 2019, 2020 and 2021 have been put at -5.4%, -5.5% and -5.4% of GDP respectively.
"With oil and gas dominating their exports, MENA oil exporters are expected to grow modestly at 0.9% in 2019, dragged down by the expected contraction in Iran on the back of US sanctions," reads part of the new report.