Economic Growth Rate Of 4.6% Not Equal To Economic Boom

Tehran, Oct 6, IRNA – Presidential economic advisor says the economic growth rate of 4.6% is not tantamount to economic boom as the volume of Iran’s economy has a yawning gap with the winter of 1390 (2011-2012) and economic growth of the spring is only an indication that the economy is coming out of recession.. Speaking in a televised interview, Masoud Nili said measurement of economic growth rate in Iran is according to international standards in which there is a relationship between economic growth rate and unemployment rate in the long run but in the recession period there is no such relationship. “Obviously, when the country’s economy is faced with recession there is less hope for employment and participation of people but at the time of economic growth and coming out of recession the hope in employment and motivation of people will become multiplied and for this reason when participation rate increases unemployment rate also goes up.” Meanwhile, an economic expert says that gaining access to an economic growth rate of 4.6% under the present economic conditions is reasonable. Commenting on ambiguities announced over the economic growth rate of 4.6% for spring, Saeed Leilaz told IRNA that such criticisms are political, adding that since the successful growth was beyond expectation certain people started to voice criticism. He said Iran’s economy has assumed an appropriate trend since February last year so that production of car manufacturers increased by 80%. Elsewhere in his remarks, he said the total economic growth for the first half of the current year is expected at 3 to 3.6 percent. It should be noted that 6% of the announced 4.6 economic growth rate was due to the increase in making investment whereas in the years 1390 and 1391 (2011-2012) investment fell dramatically, he commented./end