WANA (August 12) – Ehsan Khandozi, the Minister of Economic Affairs and Finance, mentioned a significant event in macroeconomic indicators during the 13th government in a TV program. Until 2011, Iran’s economy relied on oil revenues. Since 2012, sanctions have disrupted this structure. Only in the mid-90s, with the suspension of sanctions, did the indicators improve.

 

The Minister of Economic Affairs and Finance described the ministry’s performance in the 13th government, stating that the three years of the 13th government marked a different historical experience in the economy. Despite the continuation of the sanctions, macroeconomic indicators changed and returned to long-term performance.

 

According to the Minister of Economy, the country’s average economic growth over 20 years was 2.7%, and over 10 years it was 0.5%. However, from 2021 to 2023, the growth exceeded 4.5%. Khandozi stated that although some people believe this growth is due to the expansion of the oil sector, this is not the case.

 

The Minister of Economy stated the non-oil economic growth was 1.2% over 10 years and 3.5% over 20 years. In the past three years, this figure was 4%. The investment growth over 10 years was -7%, over 20 years was -0.3%, and in the last three years 6.4%.

 

He mentioned that the rise in investment exceeded the economic growth rate, resulting in investment accounting for 22% of the economic growth. Additionally, the Minister of Economy stated that non-oil exports in 2021 broke all previous records in terms of both currency and volume, with even higher figures projected for 2023.

 

The Minister of Economy said, “Without the increase in exports, the currency supply wouldn’t have risen. The 13th government’s policies and the late president’s efforts with neighboring countries have expanded our economy.”

 

He announced that Iran’s economic growth surpassed predictions. 2022 growth reached 3.8%, exceeding the IMF’s 2.3% prediction. The projected 2.3% growth for 2023 was reported to be 4.7% in April 2024. In the first four months of 2023, he mentioned that we surpassed last year’s record in the country’s transit, reflecting the results of active economic diplomacy in the financial indicators.

 

He mentioned that improving the business environment effectively changed the criteria and standards. The Minister of Economy stated that over the past three years, the government’s tax revenue has increased while the reliance on bonds and borrowings has decreased by half, making the budget more resilient.

 

He stated that recent institutional and structural reforms in the country’s treasury, including establishing a single treasury account and overcoming resistance to its implementation, have enabled budget management without borrowing.

 

The treasury had a 53 trillion toman deficit at the start of government operations. He mentioned that through careful financial management, the treasury prevented any further deficit, a departure from decades of constant borrowing in the past.