Sunday, November 07, 2004

Shariatmadari Pushes Iran's export growth higher than world average

IranMania News: " 'Iran's export growth higher than world average'

Sunday, November 07, 2004 - ©2004 IranMania.com
LONDON, Nov 7 (IranMania) - Last year, Iran set a higher export growth rate compared with the world average, the Iranian Minister of Commerce, Mohammad Shariatmadari stated.

“The world range fluctuates from 5% to 12% while some countries even set negative growth”, Shariatmadari added saying that last year Iran set export growth twice the world average which has been regarded as unprecedented. “We have recorded a 68% growth in exports during the past seven years”, the Minister implied. “We should not think we could manage to achieve our goals in the global markets simply through holding prize-giving ceremonies”, he said, adding it is necessary to think of which goods and which customers before taking any action. The government has provided all requirements for policy makers and exporters, Shariatmadari uttered, underlining, “Most of the government’s work in these years was channeled into preparing the ground for optimization of export strategies.”

In order to develop the country’s export potential, infrastructural support, both theoretically and practically, are needed. “The government should reform the current management systems as well as try to attract foreign investments”, Shariatmadari stressed.

The Iranian government allocated some Rls.1000 bln for export prizes under the provisions of the yearly budget plan since 2002. “We have so far received about 60% of the amount,” the minister stated. Iranian exporters are making greater efforts in improving the quality of their products since the ministry of commerce set up prize-giving ceremonies to honor most accomplished vendors.

According to the report conducted by the Management and Planning Organization (MPO), the average GDP growth has been recorded at 5.6% during the past four years of the third economic development plan (2000-05), which is 0.2% lower than what was projected in the plan. Aside from the oil industry, Iran has set a 6% annual economic growth in the past four years of the third plan, corroborating 0.8% lower than the projections.

The report added that the service sector recorded 4.8% annual growth rate. Oil and gas industries contributed 0.4% and 5.6% to the total average growth, respectively. MPO report implied 9.8% annual VA average for the industry and mines sector during the four-year period, which is 2.2% of the total 5.6%. It has been reported as the most profit-making sector along with the service sector (2.5%).

The manpower profitability has increased 2.4% each year within the third plan, 1.1% higher than the objective. This has happened, MPO hinted, as a result of utilizing capital-intensive tactics in production.

In the same period, the investment productivity index decreased 2.2% each year while the Total Factor Productivity (TFP) index recorded 0.52% growth annually to share 9.3% in the national economic growth.

The report noted that the projected growth can be achieved through extending use of capital-intensive methods and construction projects as well as exerting structural reforms on high management systems."

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