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Iran’s economy in 2016 and 2017 is expected to grow by 4.8 percent and 5.4 percent, respectively, the UN said in its “World Economic Situation and Prospects 2016” report published Jan. 25.

The report forecasted that the country’s inflation in the mentioned period will fall to 11.8 percent in 2016 and 10.5 in 2017 which was estimated 13.4 for 2015.

While real GDP growth of Iran was estimated at 0.5 percent in 2015, the unemployment rate has been in double digits for the past several years, standing at 10.8 percent in mid-2015.

Regarding the oil prices, the report suggested that Iran’s production will contribute to global supply—especially in the second half of 2016. At the same time, despite internal pressures from several members, OPEC as a group is not expected to cut production, keeping downward pressure on prices.

The market price has already adjusted to some extent to the fact that Iran’s production will enter the global market. However, the pace and volume at which this will happen is unclear, which could lead to further downward price adjustments.

In the Islamic Republic of Iran, the removal of international sanctions is expected to provide a boost to economic activity, with oil production and exports forecast to recover gradually, the report said.

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