Sanctions Made Iran Resilient to Low Oil Price, Moody's Says
- Years of sanctions protected Iran from external volatility
- Iran structurally reformed sooner than other oil exporters
In an ironic twist, international sanctions against Iran appear to be benefiting its economy as decades of isolation forced the nation to adapt to low oil prices more quickly than other crude exporters, according to Moody’s Investors Service.
Gross domestic product will grow 5 percent in 2016-2017, thanks to a solid foundation built to cope with exclusion from the global financial system, Moody’s said in an e-mailed research note Monday. Removal of sanctions as part of a nuclear deal reached last year will grant Iran access to about $150 billion in its frozen foreign assets, which will be spent on reviving the country’s aging infrastructure, it said. The country also will regain access to the international payment system, lowering trade and financial costs.