After five years of sanctions, Iran is finally to rejoin the global community. The return of Iran should have an effect on international growth through the oïl channel but above all, will bring huge changes to Iran itself. International sanctions have impacted the Iranian economy. Two consecutive years of negative growth and runaway inflation have tested Iran’s resistance model to its limit. The lifting of the EU embargo will allow Iran to revive its oil sector and return to the global market. The country is perceived as a new Eldorado, with its 78 million potential consumers. Moreover, with its huge oil and gas reserves, skilled labor force and strategic location, Iran is holding all the cards to become one of the top emerging economies during the next few years.
The lifting of sanctions, following the P5+1 agreement, will have a significant effect on raising Iran’s output. Coface expects real GDP growth to stand at 3.8% this year.