Iran’s Economy on Right Path

Iran’s economy is improving and has been heading in the right direction since the new administration took office in August 2013, said the country’s economy minister.

News ID: 60549

Date: 12 October 2014 - 10:00

Heading a high-ranking economic delegation, Iran’s Economic Affairs and Finance Minister Ali Tayyebnia is in Washington for the joint annual meetings of the World Bank Group and the International Monetary Fund (IMF).

In an address to 2014 annual meetings on Friday, the Iranian minister elaborated on the Islamic Republic’s achievements in economy over the past year.

Each year, the gathering brings together central bankers, ministers of finance and development, private sector executives, and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.

The following is the full text of Tayyebnia’s speech in the meeting:

“In the Name of God, the Compassionate, the Merciful

Excellencies, Distinguished Ministers, Esteemed Governors of Central Banks, Ladies and Gentlemen,

As the Minister of Economic Affairs and Finance of I.R. Iran, I am delighted to take this opportunity to concisely bring a few matters to your kind attention. This meeting convened while oppression and injustice, violence and extremism, poverty and discrimination have covered all over the world. These issues have adversely affected the global economy and politics. The presence of terrorist and extremist groups, particularly in the Middle East and North Africa (MENA) region, has not only seriously threatened stability and peace, but has also jeopardized economic security and development in major parts of the world. Elimination of extremism and terrorist activities of the violent groups is one of the preconditions for promoting social and economic development of countries. Materialization of the “World without Violence” initiative proposed by the President of I.R. Iran, and adopted by the United Nations last year, requires assistance of international institutions, such as IMF and the World Bank Group, in improving economic infrastructure, reducing poverty and promoting economy of developing countries.

Projections indicate gradual economic growth in MENA region. However, this region is still facing serious issues such as unemployment, inflation and budget deficit. The economic outlook of the region is shrouded in uncertainty and subject to a variety of risks which is linked to political instability and policy
uncertainties.

Distinguished Colleagues,

Regarding my country, the Islamic Republic of Iran, I would like to mention that despite hardship from oppressive and unilateral sanctions imposed, including by some Western governments, with the aim of exerting pressure on the livelihood and welfare of ordinary people and health of children and women, as well as instability and insecurity of the region, I.R. Iran has successfully alleviated pressures by adopting “Economic Resilience Initiative”.

Evidence indicates that economic recovery and development trend has commenced since last year when the new administration took office. By adopting appropriate policies during the last year, bright economic outlook and signs for growth and recovery have been appeared.

Inflation rate has decreased from 40 percent in September 2013 to 21 percent in September 2014 with projections of less than 20 percent at the end of October 2014. Economic growth has changed from minus 6.8 percent in 2012 to minus 1.9 percent in 2013 and we are witnessing many indicators reflecting a positive growth in the current year. In this direction, current spring GDP growth rate shows 4.6 percent.

The commencement of positive economic growth along with significant reduction of inflation rate reflects that Iran’s economy has followed the right direction since last year.

Excellencies, It is expected that the World Bank Group and IMF assist their member states in achieving their development policies and objectives. By adopting political approaches to I.R. Iran, the World Bank will unfortunately lose credibility and disappoint the whole region severely.

As the Minister of Economic Affairs and Finance of I.R Iran and a founder member of the World Bank, I expect that joint mutual cooperation in exchanging technical and expertise missions as well as mobilizing and financing infrastructure and development projects in my country be redirected to an appropriate and smooth channel. Drafting Country Partnership Framework (CPF) for Iran by the World Bank is a prerequisite for this new approach which I hope to be materialized and operative shortly.

Thank you”

Source: Tasnim