Iran’s economy continues to take a battering as US sanctions take their toll, according to estimates from the Institute of International Finance (IFF), a global trade group of financial institutions.
The IFF estimates that the Iranian economy will contract 7.2 percent for the current fiscal year 2019-2020 (ending March), representing an even deeper contraction than the previous year’s estimated contraction of 4.6 percent.
US sanctions hit the oil sector particularly hard, dried up foreign investment, and disrupted major business deals that were in the pipeline. The sanctions do not allow US companies to trade with Iran, but crucially any international company that uses a US company for transactions would also be in breach of the sanctions. Due to the nature of the global economy it is virtually impossible to conduct trade without exposing money to the US financial sector.
The IFF believes most of the economy’s contraction is due to significant decline in crude oil exports, dropping over 85 percent to 0.4 million barrels per day (bpd) in recent months from highs of 2.8 million bpd in May 2018. It is worth noting, however, that this figure is based on official numbers, which may understate exports as Iranian authorities have repeatedly sought to illegally export oil and avoid sanctions.
نستخدم ملفات الكوكيز لنسهل عليك استخدام مواقعنا الإلكترونية ونكيف المحتوى والإعلانات وفقا لمتطلباتك واحتياجاتك الخاصة، لتوفير ميزات وسائل التواصل الاجتماعية ولتحليل حركة المرور لدينا...اعرف أكثر