IRAN: positive forecasts for the economy
Thursday, March 17, 2016Sign up to the CRIBIS Community and download the Country Insight Snapshot Observatory provided by Dun & Bradstreet with focus on Iran: after the nuclear agreement signed on January 2016, forecasts on a positive improvement of the Iranian economy have gained widespread belief, at least in the short term. Risk still remains high, however the economy conditions have moved from a rating DB5c to DB5a (on a scale ranging from DB1a – minimum risk – to DB7d – maximum risk). If we compare the situation to January 2014, the improvement amounts to six quartiles.
The agreement has thus paved the creation of the 28th largest economy of the world with significant business and investment opportunities. Nevertheless, the economy still remains weak and growth is threatened by low oil prices.
Given the persistent high risk, it is advisable to limit investments to those which are expected to yield high returns.
In summary:
- The government is slowly adopting liberalization strategies.
- The sanctions revoke will translate in a significant increase in business and investment opportunities.
- The economy’s potential in the long run has been strongly threatened by international sanctions and by inadequate internal politics.
- State property of the largest companies present alters market conditions.
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