TEHRAN- The World Bank in its recent report of Middle East and North Africa region (MENA) announced that Iran’s current account surplus rose to 6.5 percent of gross domestic product (GDP) in 2016 from 2.7 percent in 2015.

The report also anticipated that the figure will remain at 6.5 percent in 2017, while it will drop to 5.5 and 4.6 in 2018 and 2019, respectively.

It said the huge increase in the current account surplus is because Iran is back in the spotlight after the implementation of the Joint Comprehensive Plan of Action last year, attracting more foreign direct investment (FDI) mostly in the oil sector.

Growth in 2016 is estimated to have reached 6.4 percent, following a 1.8 percent contraction in the previous year, resulting from higher growth in the mining and manufacturing, services and agriculture sectors.  

Oil exports have increased significantly due to an increase in oil production from 3.2 million barrels per day in 2015 to 3.7 million in 2016 and an expected 4.2 million in 2017. 

Iran is the only country with a fiscal deficit of less than 1 percent of GDP in that year. The fiscal deficit is expected to turn into surplus in 2018. 

Putting all this together, we expect growth to stay above 4 percent by 2019, higher than other oil exporters in the region, the report added.

MA/MG