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Iranian economy to grow 1pct in 2014, World Bank reports

(SHADA: TEHRAN) - Irans gross domestic product (GDP) will enlarge by one percent in 2014, according to the World Banks newly-released Global Economic Prospects report.

The report has predicted 1.8 percent and 2 percent GDP growth for Iran in 2015 and 2016, respectively. Iran's GDP growth rate was -1.3 percent in 2013, the report said.

In September 2013, the Central Bank of Iran (CBI) announced that the national economy contracted by 5.4 percent in the past Iranian calendar year (ending March 20, 2013). The Iranian Minister of Economic Affairs and Finance Ali Tayyebnia had earlier revealed that very low economic growth is currently the main challenge facing domestic economy. “Our efforts will focus on improving the living standards by curbing inflation and building a more productive economy,” he told a local media.

The global economy is at a “turning point”, the World Bank has said, as it forecasts stronger growth for 2014. The global GDP is expected to expand by 3.2 percent this year, up from 2.4 percent in 2013, with much of the pick-up coming from developed economies. The upward trend is expected to continue before stabilising at 3.4 percent in 2015 and 3.5 percent in 2016, the report has predicted.

The developing nations will also be showing good performance with a 5.3 percent growth forecast for 2014, up from 4.8 percent in 2013.

From regional perspective, the bank describes the growth as flat in East Asia and the Pacific, modest in Latin America and the Caribbean and held back in the Middle East and North Africa.

The economies of MENA region still move at idle speed due to the political unrest in Egypt, the deadlock in Tunisia and the escalating violence in Syria, and their impacts on Lebanon and Jordan and other neighbouring countries.