Iran recovery a long way off despite nuclear deal: Ministers

Speaking to members of parliament on Monday and Tuesday, the industry and interior ministers painted a bleak picture of chronic underinvestment, surging inflation and unemployment in the Islamic republic.

Interior Minister Abdolreza Rahmani Fazli warned on Monday that the country may achieve growth of only between 1.5 and three per cent per annum.

“With that sort of growth, unemployment and inflation will double in the short term. We need foreign investment,” he said. His predictions fall far short of the growth target of eight percent President Hassan Rouhani set in January to tackle double-figure inflation and high unemployment.

Rouhani’s government had hoped the lifting of economic sanctions following last year’s nuclear deal would trigger an influx of billions of dollars from overseas to boost growth and create jobs in a country where around a quarter of young people are out of work.

Iran needs annual foreign investment of 30- 50 billion to reach the eight percent growth target and cash in on the nuclear deal, Rouhani told parliament in January, a day after implementation of the historic agreement.