Iran’s Economy to Shrink on Tighter Sanctions, World Bank Says

Iran’s economy will shrink 1 percent this year as the international trade embargo tightens, the World Bank said.

“Product boycotts and financial sanctions are expected to exact a toll on growth over 2012 and 2013,” the bank said in a report published today. It predicted a contraction of 0.7 percent next year. The Washington-based bank had predicted in January that Iran’s $480 billion economy would grow 2.7 percent and 2.9 percent this year and next.