Iran's economy has showed relative booming success in the second quarter of the year (June 22-September 22) as the indices indicate, Central Bank of Iran (CBI) said in a report on Iran's economic indices in the second quarter of present Iranian calendar year (started on March 21).
Wednesday edition of the Persian-language daily `Iran' quoted the CBI report as saying that sharp increase in crude prices, which is expected to go as high as even $ 80 bpd, pushed up Iran's forex revenues far beyond $ 40 billion, hitting the annual budget targets in the initial months of current year.
Moreover, based on the Fourth Five-Year Economic Development Plan's (2005-10), starting this year on the heels of the 20-year vision plan, Iran should turn into the first major economic power in the region.
The new government's plans to administer justice and curb inflation are other backups to Iran's booming economy pledge.
The CBI report says that in the first quarter of the year, government approved to channel $ 383.2 billion credit to the private sector. Moreover, $ 616.6 million contracts, including the ones worth more than $ 565 million contracts by the industry sector, were signed in the period. The CBI report indicates that $ 2.587 billion such contracts had been signed in 2004, $ 2.575 billion in 2003, and $ 1.179 billion in 2002. The industry sector had reportedly a lion's share in the contracts signed in the years.
The current account balance climbed to $ 3.266 billion and the trade balance surplus to $ 4.241 billion in the first three months of the year.
Furthermore, the worth of exports and imports in the first three months of the year stood at $ 13.435 billion and $ 9.194 billion respectively. The oil and gas exports earned the country $ 11.496 billion, while the non-oil commodities $ 1.939 billion in the period under study. Total amount of Iran's foreign liabilities stood at $ 16.192 billion and average dollar parity rate in the interbanking market was rls 8,924 in the period. Based on the report, the liquidity growth rate stood at 2.7 percent, the monetary growth rate at minus 5.4 percent and the quasi-money growth rate at 7.5 percent. The liquidity control was one of the goals of the Third Plan but it was not met during the plan to the effect that average liquidity growth rate amounted to 29 percent during the plan.
The CBI report put the liquidity volume at rls 682,245 billion in this year's Ordibehesht, the second month in Iranian calendar, showing 28.8 percent growth compared to the same month the previous year. It said the liquidity volume soared to rls 704,430 billion in Khordad, the third month in Iranian calendar, showing 27.6 percent growth compared to the previous month this year.
In the first three months this year, Iran produced as many as 4,104,000 bpd oil, that was up 1.6 percent compared to the same period the previous year -- 2,829,000 bpd of the output was exported in the period, showing 4.7 percent growth compared to the match period the previous year. Iran's crude production stood at 3,574,000 bpd in 2001, 3,305,000 bpd in 2002, 3,736,000 bpd in 2003 and 3,835,000 in 2004.
Iran's oil output is expected to show drastic increase in the 2005-6 fiscal with respect to operation of new oil fields, said the CBI report.
In the first three months of the year, 21,386 megawatts/hour electricity were produced in the steam power plants, 15,000 m/h in the gas and combined cycle power plants, 4,042 m/h in the hydraulic and diesel power plants, pushing Iran's total electricity production at 40,898 m/h. Statistics available show power generation in the hydraulic power plants rose by 59.8 percent in the period compared to the same period the previous year. The construction services price index improved by 285.8 points in 2004, 227.2 points in 2003, 184 points in 2002 and 156.1 points in 2001.
The CBI report also pegged the construction materials wholesale price index at 268.8 points in 2004 and at 216.9 points in 2003, while at 192.1 points in 2002 and 160.9 points in 2001. Volume of investment for establishment of the new industrial and mining units rose by 79.4 percent to rls 198,404 billion in the first quarter of the year compared to the figure in the corresponding period the previous year.