Lifting the economic sanctions on Iran certainly has its dangers because of its government’s inexcusable support of international terrorism. The Iranian people will benefit from the nuclear deal, however, because the increased flow of dollars will elevate the country on the global economic stage, said Ludovic Subran, chief economist at Euler Hermes. Subran said Iran’s economy moved out of recession in 2014, so a modest improvement was discernible prior to the recent nuclear deal. He said further momentum is expected, with over 2% growth in 2015 and over 4% in 2016 if the sanctions are finally lifted.
Ludovic said lifting international sanctions will increase exports and imports in Iran by more than 20% in 2016, with imports increasing by a further 13% or more in 2017. 'It will be another two or three years before we see a reintegration of Iran,' said Subran. 'For the U.S. it is as much as $3 billion additionally in export per year when the sanctions are fully lifted.' Subran said Chinese goods are currently overflowing in Iran, filling the void left by U.S. manufacturers and exporters. And when it comes to China, Subran – like Federal Reserve Chairwoman Janet Yellen – is watching that country’s economy carefully. He envisions growth for the country of 6.8% this year and over 6.5% in 2016.