Despite a fall in this year's growth compared to the previous year, the economy is still growing at a relatively strong rate of 5.4 percent.
Iran's economic growth rate was 5.8 percent last year and is expected to decline to 5.4 percent this year, while the rate for the next year is projected to be around 5.2 percent, ISNA quoted its economic reporter as saying.
The ISNA report goes on to say that the country's growth rate remains relatively high, primarily because of soaring oil prices, adding that high oil income gives the government a free hand to keep pursuing an expansionary fiscal policy, which results in high levels of private consumption and investment expenditures.
According to the report, the high oil income will be partially offset by the country's limited refining capacity and reliance on fuel imports.
It is expected that obstacles imposing constraints on exports will lead to further decrease in the country's economic growth in the next Iranian calendar year, reducing the real GDP to 4.9 percent.
It has been projected that growth rates for the Iranian years 1389 and 1390 (2010 and 2011) could fall further to 4.7 percent, with prospects for a slight increase to 4.7 percent in the following year, the report says.
... Payvand News - 03/04/08 ... --