BMI Industry View

BMI View: The landmark Iranian nuclear agreement of July 2015 paves the way for the return to growth of the Iranian economy and for a strong uptick in foreign investment. Consumer demand, including for agricultural products, will be a strong beneficiary. The increased supply of inputs and potential investment in capacity and infrastructure will improve the outlook for agricultural production growth in the country.

However, such a development will depend on the country doing some key modernisation investment, particularly in irrigation, as Iran relies heavily on the vagaries of the weather. Therefore, production expansion will be slower than consumption growth in the coming years and Iran will remain a large and growing importer of key commodities.