World Bank: Turkey to benefit from removal of sanctions on Iran
by Daily Sabah
ISTANBULAug 13, 2015 - 12:00 am GMT+3
by Daily Sabah
Aug 13, 2015 12:00 am
Turkey was listed among the countries most likely to see the largest rise in post-sanctions trade with Iran once the nuclear deal is ratified by the P5+1. Iran was subjected to sanctions related to its nuclear program, and the World Bank expects that lifting the sanctions will have significant impacts on the world oil market, the Iranian economy and Iran's trading partners.
The nuclear deal centered on removing the sanctions on Iran implemented by the U.S. and the United Nations on the condition that Iran slows down its nuclear program. The economic growth of Iran is predicted to jump from 3 percent to about 5 percent in 2016 as Iran returns to the global market, which will also alter the landscape of the global oil supply. The World Bank's Middle East and North Africa (MENA) Quarterly Economic Brief indicated that Iran will have capacity to export more oil than while the sanctions were in effect and will speed up its economic recovery while other oil exporters in the MENA region will see their revenues fall. However, oil importing countries such as Tunisia and Egypt are expected to enjoy lower prices thanks to increased regional and global supply.
The World Bank press release said that that cost of doing trade with Iran will fall, boosting Iran's foreign trade volume. The bank's report estimates that Iran's exports will increase in time and predicts Turkey, the U.K., China, India and Saudi Arabia will have the greatest increase in bilateral trade with Iran after the removal of sanctions. It was also reported that foreign direct investment in Iran could double, reaching about $3 billion a year. The report's author, World Bank MENA economist Lili Mottaghi said multinational companies have raised interest in investing in Iran since the framework of the nuclear deal was established.
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