World Bank predicts 1.6% growth and 42% inflation for Iran’s economy
The World Bank has forecasted a -1.6% economic growth rate for Iran in 2025, alongside 42% inflation, according to its latest Middle East economic outlook report cited by webangah News Agency.
The international institution cited two primary factors behind Iran’s sharp economic downturn: declining oil revenues due to falling global crude prices and the impact of energy imbalances on domestic industries.
The report notes that Iran’s economy grew by 3% in the previous year. it projects a modest recovery in 2026 with 0.6% growth, ending the anticipated one-year recession.
This year’s predicted 42% inflation rate significantly exceeds the 35.4% recorded in 2024.
The World Bank estimates Iran’s current account balance will shift from a positive 1.7% of GDP in 2024 to a negative -1.6% of GDP in 2025.
The government fiscal balance is also projected to worsen, moving from -3.1% of GDP last year to -4.6% this year.
