TEHRAN - Iranian economy is projected to grow by 2.4 percent in 2022 as oil production and industrial activity rebound in the country, according to the World Bank’s Global Economic Prospects (GEP) report released earlier this month.

“In the Islamic Republic of Iran, the pandemic’s impact on the services sector was limited and oil production and industrial activity rebounded, minimizing the slowdown in economic growth,” the report stated.

The bank has increased its forecast of Iran’s economic growth by 0.2 percent compared to its previous report published in June 2021.

“Growth in the Islamic Republic of Iran in 2022 has been revised marginally higher with tapering COVID-19 mobility restrictions benefiting the services sector and a gradual recovery in the oil sector,” the report said.

It stated that the Iranian Gross Domestic Product (GDP) is going to register a growth of 2.2 percent in 2023.

In January 2021, the bank had predicted a 1.5 percent GDP growth for Iran in 2021 and a 1.7 percent growth for 2022.

World Bank also sees the global economy grow by 4.1 percent in the current year, expecting it to further slow in 2023.

“The global economy is set to experience its sharpest slowdown after an initial rebound from a global recession since at least the 1970s. Global growth is projected to decelerate from 5.5 percent in 2021 to 4.1 percent in 2022, reflecting continued COVID-19 flare-ups, diminished policy support, and lingering supply disruptions. Growth is envisioned to slow further in 2023, to 3.2 percent, as pent-up demand is depleted and supportive macroeconomic policies continue to be unwound,” the report read.

According to the World Bank, growth in advanced economies is forecast to decelerate from five percent in 2021 to 3.8 percent in 2022 as the unwinding of pent-up demand only partly cushions a pronounced withdrawal of fiscal policy support. Growth is projected to moderate further in 2023 to 2.3 percent as pent-up demand is exhausted.

EF/MA