FEAS Yearbook FEAS Yearbook 2012 | Page 111

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2012 TEHRAN STOCK EXCHANGE CAPITAL MARKET DEVELOPMENT AND ECONOMIC OUTLOOK 2010 ended, coinciding with the implementation of energy subsidy reforms in Iran. It was expected that will result in a slowdown in the country‘s economic activities, as enterprises should adjust to an environment of markedly higher energy prices. The first phase of reforms was launched in 2011, with some anticipated, but less severe than the foreseen impacts on goods and services prices; however, the effect was aimed to be mitigated to some extent by compensatory payments to households: the direct subsidy, which is believed to buoy domestic demand. Besides, the reform has resulted in a reduction of domestic energy consumption, which is after all, environmentally important. Iranian nominal GDP in 2011 is reported as US$ 475 billion and that includes an increase of about US$ 68 billion than the figure of 2010. However, due to the subsidy reform, the Iranian economy suffered a lower growth rate. In 2011, inflation was also considered as a troublesome side effect of the subsidy reform and was recorded as high as 22.5%. Despite the reform implementation and direct subsidy payments to the households, liquidity growth in 2011 was less than the previous year and stood at 23.8%. The figure in 2010 was announced as 26.7. It is expected that the declining trend will continue in 2012 to reach around 16%. Iranian foreign currency reserves were reported to increase US$ 26 billion and exceeded US$ 104 billion. That was the first year that the country‘s foreign currency reserves crossed US$ 100 billion level, placing Iran in the third up rank among the 30 Middle East and Central Asia countries in this index. The country‘s trade balance was positive in 2011 with the total value of US$ 137 billion exports and US$ 100.3 billion import of goods and services. The figures indicate 18 and 8% increase respectively than the values of 2010. ECONOMIC CHARTS AND TABLES Real GDP Growth (Annual Change;%) Consumer Price Inflation (Year Average;%) Current Account Balance (% of GDP) Real GDP Growth (Annual Change;%) Oil and Non-Oil Real GDP Growth (Annual Change;%) Current Oil Production and Exports (Million barrels day) Consumer Price Inflation (Year Average;%) General Government Fiscal Balance (% of GDP) General Government Non-Oil Fiscal Balance (% of Non-Oil GDP) General Government Non-Oil Revenue (% of Non-Oil GDP) Exports of Goods and Services (Billion U.S Dollars) Imports of Goods and Services (Billion U.S Dollars) Current Account Balance (Billion U.S dollars) Current Account Balance (% of GDP) Gross Official Reserves (Billion U.S dollars) 2006 2006 2007 2007 2008 2009 2010 2011 5.5 13.5 5.1 5.5 5.9 3.7 13.5 2.9 -17.8 10.1 41.4 35.4 605 5.1 25.9 5.8 11.9 9.3 5.8 6.2 4 11.9 2.3 -25.3 12.4 82.3 62.1 20.6 9.3 60.5 10.8 18.4 10.5 10.8 11.4 4.1 18.4 7.4 -18.1 12.8 105.2 73.9 32.6 10.5 82.9 0.6 25.4 6.5 0.6 0.9 3.9 25.4 0.7 -26.1 14.1 109.9 88.4 22.9 6.5 79.6 3.5 10.8 3 3.5 4.3 3.6 10.8 1 -15.2 12.5 95.6 85 10.9 3 78 3.2 12.4 6 3.2 3.6 3.6 12.4 1.7 -16.5 10.8 116.5 92.4 24.4 6 78.9 2.5 22.5 7.8 2.5 2.6 3.6 22.5 2.4 -16.8 12.1 137.1 100.3 36.9 7.8 104.6 3.4 12.5 7.1 3.4 3.5 3.7 12.5 1 -16.1 11.9 140.8 105.1 35.2 7.1 138.7 Source: IMF, Regional Economic Outlook, Middle East and Central Asia, October 2011 Key Information Contacts Tehran Stock Exchange Corporation http://www.iranbourse.com Securities and Exchange Organization http://www.seo.ir Iranian Privatization Organization http://www.en.ipo.ir TSE’s Technology Management Company http://english.tsetmc.com Central Bank of the Islamic Republic of Iran http://www.cbi.ir Iranian Chamber of Commerce, Industries and Mines (ICCIM) http://www.iccim.com Organization for Investment, Economic & technical Assistance (OIETAI) a division of the Ministry of Finance http://www.investiniran.ir PAGE 109