Iran’s non-oil growth too low

The lifting of nuclear sanctions under the Joint Comprehensive Plan of Action (JCPOA) has spurred growth, but banking system weaknesses, structural bottlenecks, and hesitation by foreign banks to re-establish financial links have held back expansion of non-oil activity, according to the latest IMF report on Iran. Real GDP grew by 7.4 percent in the first half 2016/17, rebounding from recession in 2015/16. However, growth in the non-oil sector averaged just 0.9 percent.