Iran's economy grows 5.4 percent

Iran's economy grew by 5.4 percent in the year to March 2006, the central bank said in a preliminary report, compared to 4.8 percent a year earlier. The figure of 5.4 percent was published in a report on the central bank's website. It is slightly lower than the preliminary figure of 5.5 percent growth for the same period, which had previously been announced by the central bank.
The world's fourth largest oil exporter has been enjoying windfall earnings as oil prices have soared to record levels. But economists say private investment, both domestic and foreign, is slowing partly because of fears Iran's nuclear dispute with the West could lead to international sanctions.
Economists said growth partly picked up in the year to March 2006 because of a strong performance in the agricultural sector, which accounts for something over 20 percent of the economy.