Iran on Way of Economic Recovery
U.S. crippling sanctions followed later by Europe’s breach of obligations towards the JCPOA and disgracing itself for being untrustable have not only failed in crippling Iran but also they have opened a window towards the light for economic recovery for Iranians.
IRAN NEWS POLITICAL DESK
The World Economic Forum, after releasing its report on ease in business, has released its new report titled “Regional Risks for Doing Business 2018.” The report offers a business perspective on the impact of global risks and illustrates how they are experienced differently in each region. The World Economic Forum has been publishing The Global Risks Report since 2006, highlighting each year the vulnerability of our increasingly networked and interconnected world to volatility and disruption.
The recent report has listed risks of doing business in every country. I here try to mention some points about those risks related to Iran’s economy which are as follows: 1- Water crisis 2-Growing inflation 3-Fractional conflicts 4- Liquidity crisis for investment and working capital of production enterprises in the country 5- Inefficiency of financial institutions or mechanisms and unemployment or lack of employing efficient and upgraded workforce.
The World Economic Forum claims for preparing the report, it had interviews with over 12,000 economic activists worldwide. In fact the significant number of 12,000 economic activists can be comprised of experienced activists fully familiar with Iran’s economy.
This annual report is prepared by collecting viewpoints of managers of businesses worldwide about the business climates where they are doing business.
In 2018, the report was prepared by collecting viewpoints of 12548 economic activists worldwide. The interviews were carried out between January and June 2018. At that time, most economic experts had predicted a minus 3.5 percent economic growth for Iran for 2020 because of sanctions but Iranians’ rational reaction to sanctions made the International Monetary Fund (IMF) change its previous predictions.
In its new report, the IMF believes Iran’s economy will witness positive 1.2 percent growth. The final process of Iran’s economy is to practically distance from mere sales of crude oil and to turn to non-oil exports. And this current economic condition in the country has boosted morale of entrepreneurs in Iran for national economic recovery and it has created inexplicable hope among economic activists.
While Majis election will be held in March 2019, political parties and groups are nowaday focused on naming candidates who favor the idea of supporting non-oil exports or exports of derivatives of oil. This morale has made sanctions be considered as an opportunity for the country and it will bolster the new strategy which had been ignored because of idleness and passiveness of former governments.
By: Hamid Reza Naghashian
