World Bulletin / News Desk
International ratings agency Moody’s projects Iranian economy to grow in the years to come over its solid foundation and sanctions removal.
In an e-mailed research note Monday, Iran’s gross domestic product (GDP) will grow five percent in 2016-2017, thanks to a solid foundation built to cope with exclusion from the global financial system.
According to Bloomberg citing Moody’s Investors Service, international sanctions against Iran over its nuclear program appear to be an advantage for the economy as decades of restrictions have made it adapt to low oil prices more quickly than other crude exporters.
Removal of sanctions as part of a nuclear agreement reached last year will grant Iran access to about $150 billion in its frozen foreign assets, which will be spent on reviving the country’s aging infrastructure, the report said.
The country also will regain access to the international payment system, lowering trade and financial costs.
“International sanctions meant that Iran had to adapt to the reality of lower oil revenues and implement structural reforms much earlier than other oil-exporters,” Atsi Sheth, an associate managing director at Moody’s, said in a statement. “Most other oil-dependent sovereigns are only just beginning to consider structural fiscal reform.”