TEHRAN – The landmark Iranian nuclear agreement of July 2015 paves the way for the return to growth of the Iranian economy and for a strong uptick in foreign investment, Business Monitor International said.

In its Iran Agribusiness Report, published on August 20, 2015, Business Monitor International predicted a 2.9 percent growth in Iran’s Gross Domestic Product (GDP) in 2016, up from 0.6 percent expected in 2015. The report also predicted an average 3 percent growth from 2015 to 2019. 

Meanwhile, the consumer price inflation rate is forecast to hit 18 percent in 2016, down from 23 percent expected in 2015. The report also predicted an average 15.8 percent inflation rate from 2015 to 2019. 

The report also said the increased supply of inputs and potential investment in capacity and infrastructure will improve the outlook for agricultural production growth in the country.

Iran’s total foreign direct investment (FDI) stood at $2.105 billion in 2014, according to the United Nations Conference on Trade and Development (UNCTAD). 

Western companies are one after the other engaged in talks with Iran to resume their delayed activities or make new investments in the Islamic Republic in the wake of the nuclear agreement.  

According to the World Bank, Iran, following Saudi Arabia, is the second largest economy in the Middle East and North Africa (MENA) region with an estimated GDP of $406.3 billion in 2014. 

The World Bank has forecasted Iran’s GDP will grow by 1 percent in 2015. It also predicted a 2 percent GDP growth for the country in 2016.   

The Central Bank of Iran has announced that the national economy expanded by 3 percent in the previous Iranian calendar year, which ended on March 20, 2015.