Iran’s economic growth to hit 5 percent in 2024, predicts World Bank

TABNAK: The progress is estimated as country is exempted from the OPEC+ agreement, oil restrictions, the World Bank said in its latest World Economic Outlook.

A downturn in the gas extractives sector operations, reduced shipping through the Suez Canal, slower investment partly owing to limited private sector credit, and a dampened recovery in tourism because of the conflict in the region.

Global growth is expected to remain “stable for the first time in three years” in 2024, at 2,6%, reaching an average of 2,7% in 2025-2026, “well below” that recorded in the decade before covid- 19, predicted the World Bank.

«The expectation for 2024 is that, for the first time in three years, the global economy will stabilize, although at a level considered low based on recent historical standards», pointed out the most recent Global Economic Perspectives from the World Bank Group, released on Wednesday.

«Four years after the disruptions caused by the pandemic, various conflicts, inflation and monetary tightening, it appears that global economic growth is stabilizing», said Indermit Gil, Chief Economist and Senior Vice President of the World Bank group.

«However, growth is at lower levels than in the period before 2020», noted Gil, highlighting that «the prospects for the world's poorest economies are even more worrying», as they face «punitive levels of debt service, possible trade restrictions and climatic events that generate high costs».