In a report published in June, the World Bank (WB) predicted that Iran’s economy will grow 4 percent in 2017.
(SHADA: TEHRAN) -- In its January report, the World Bank mentioned that Iran's economic growth rate would be 5.2 percent in 2017; however, in its new report, the predication is 4 percent.
According to WB, the economic growth reduction is due to new sanctions imposed by the USA which delays foreign investment in Iran.
Early in February 2017, the US Treasury Department imposed new sanctions against 13 individuals and 12 entities linked to Iran, claiming the sanctions are related to Iran's missile program.
According to the World Bank’s new report, Iran’s economic growth rates were 4.3% and -1.8% in 2014 and 2015 respectively.
The World Bank also estimated a 6.4% economic growth rate in 2016. The report also forecasts 4.8 percent and 4.5 percent growth in 2018 and 2019 respectively.
In the June report, WB did not change its previous forecast of the world economic growth rates in 2017-18 which were 2.7 and 2.9 percent respectively.
In its January report, the bank reported that the rate of global economic growth would be 2.9 percent in 2019, but in its new report the rate reduced to 1.7 percent.
The World Bank expects that South and East Asia continue their growth respectively with 6.8 and 6.2 percent in 2017.
China and India will respectively have 6.5 and 7.2 percent economic growth rates in 2017.
In 2017, the rate of economic growth will be 1.9% in advanced economies, 2.5% in Europe and Central Asia, 0.8% in Latin America and the Caribbean, and 2.6% in Sub-Saharan Africa.
The World Bank has predicted the economic growth of the Middle East and North Africa will reduce from 3.2 percent in 2016 to 2.1 percent in 2017, which is due to declining oil production in producing countries.
According to the World Bank, continued geopolitical conflicts, weaker-than-expected rise in oil prices, and social tensions that may delay implementation of key structural reforms are the main three risks facing the Middle East and North Africa.