Chapter 2: Economic Outlook

January 2006
Iran Business Forecast Report;2006 1st Quarter, p11
Country Report
Country Report
This article presents information on economic outlook in Iran. The economy of Iran is highly dependent on hydrocarbon revenues. Strong oil prices over recent years have ensured robust growth, but if oil prices decline over the medium term, as is anticipated, slow progress in diversifying the economy will leave it highly vulnerable. The article presents strengths, weaknesses, opportunities, and threats analysis of the economic outlook in Iran. The election of hardliner Mahmoud Ahmadinejad as the president of Iran in June 2005 caused much anxiety among the business community and investors, because his lack of experience in national government gave little indication of the potential direction of policy, while his election rhetoric hinted that it might be distinctly populist.


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