Iran’s economic growth rate hits 5.5 percent

TEHRAN,Dec.28(MNA)--Iran’s economic growth year stood at 5.5 percent in the previous calendar year (ended on March 20, 2011), the deputy economy minister said in Tehran on Tuesday. “The Subsidy Reform Plan is being implemented amid tight international sanctions. This issue shows the country’s economic stability,” Mohammadreza Farzin said. The plan, launched in December 2010, allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts. Meanwhile, the Central Bank of Iran had previously reported that Iran’s economic growth in the previous (calendar) year stood at 3.5 percent including the oil sector, and 4.3 percent excluding the oil sector. According to World Bank predictions, Iran’s Gross National Product will rise by 6.7 percent in 2011 compared to the 6.1 percent rise in 2010. Iran needs up to $300 billion in foreign direct investment (FDI) to meet objectives of its fifth five-year development plan (2010-2015), and reach 8 percent economic growth rate, the Iranian deputy finance and economic affairs minister said in October. “Totally, the country needs around $1 trillion investment by the end of the fifth development plan,” Behrouz Alishiri told . Some $15 billion in foreign direct investments was attracted last (calendar) year, he added