Iran slips deeper into recession, breakeven oil price hits $195

A general view of Abadan oil refinery in southwest Iran.- Reuters
Iran economy contracted 4.8 per cent last year and it will slip deeper into the recession this year.
The Iranian economy will see massive contraction this year while its fiscal breakeven oil price will also jump from $155.6 per barrel in 2019 to $195 next year as US sanctions bite, International Monetary Fund said on Monday, October 28.
Iran economy contracted 4.8 per cent last year and it will slip deeper into the recession this year as economy will contract 9.5 per cent. For 2020, it will see zero growth, says IMF.
Tehran's breakeven price has also been consistently rising since 2016, rising from $58.4 a barrel in 2016 to $64.8 in 2017 and $82.0 in 2018. It is projected to rise further this year and the next.
"Iran's main export, oil, is severely restricted, and imports have collapsed. Some stability in the level of output is expected in 2020, culminating in near-zero growth," IMF said in its latest report.
As a result of tougher US stance, Tehran's crude production has been consistently declining over the last three years. Production, as per IMF data, is projected to slip from 3.49 million barrels per day in 2018 to 2.29m bpd this year and 2.11m bpd in 2020.
Even the Middle East and Central Asia region's outlook has been largely hit by shrinkage of Iran's economy. Economies of Middle East and North Africa and Pakistan (MENAP) will shrink by -1.3 per cent this year but will rebound next year to 2.1 per cent in 2020.
-
Corporate
ADIB recommends cash dividend of 46.6% of net...
Abu Dhabi Islamic Bank (ADIB) has announced that its board of... READ MORE
-
Aviation
Covid-19: Airbus says won’t lay off staff...
The staff situation in Spain, another production site for the... READ MORE
-
Local Business
Gender equality strengthens innovation
Women empowerment advocacy has yielded positive outcomes at the... READ MORE
-
Business
UAE, Saudi non-oil recovery on track
Private sector economic activity improves at slower pace. READ MORE
-
Government
UAE passed 11 laws in two years to empower women
Landmark legal reforms include equal wages for women and men;... READ MORE
-
VAT in UAE
Services provided by artists, influencers subject ...
Announcement shared in the latest Basic Tax Information Bulletin. READ MORE
-
Emergencies
Sharjah: Over 11,300 cameras help police ensure...
3 types of cameras installed in Sharjah, including ones that detect... READ MORE
-
MENA
Saudi-led coalition bombs Houthi targets in Yemen
Ten Houthi drones targeting civilians were destroyed on Sunday. READ MORE



