TEHRAN – Iranian economy is projected to grow by 1.5 percent in 2021 as the domestic markets are getting back on track and the negative impacts of the coronavirus pandemic begin to wane, according to the World Bank’s Global Economic Prospects (GEP) report released on Tuesday.

“Growth in the Islamic Republic of Iran is expected to recover as domestic consumption and tourism begin to normalize, and disruptions related to COVID-19 taper,” the report stated.

According to the mentioned report, Iran’s Gross Domestic Product (GDP) is going to continue its positive growth in 2022, expanding by 1.7 percent.

In January 2020, the World Bank had predicted a 1.1 percent GDP growth for Iran in 2020 and 2021.

Global economic output is expected to grow by four percent in 2021 assuming widespread rollout of a COVID-19 vaccine throughout the year; the estimation however is still five percent below pre-pandemic levels.

A recovery, however, will likely be subdued, unless policymakers move decisively to tame the pandemic and implement investment-enhancing reforms, the World Bank says

World Bank has reported Iran's economic growth in 2020 to be negative 3.7 percent, which is still 1.6 percent better than the entity’s previous estimations. The average global economic growth in 2020 was negative 4.3 percent and the figure for advanced economies averaged negative 5.4 percent.

Based on the report, aggregate GDP in emerging markets and developing economies, including China, is expected to grow five percent in 2021, after a contraction of 2.6 percent in 2020.

Although the global economy is growing again after a 4.3 percent contraction in 2020, the pandemic has caused a heavy toll of deaths and illness, plunged millions into poverty, and may depress economic activity and incomes for a prolonged period.

EF/MA