Iran sees higher economic growth despite sanctions

By Hossein Jaseb

TEHRAN (Reuters) - Iran's foreign debt ratio has declined and its economic growth is expected to increase, the economy minister said on Saturday, shrugging off the impact of international sanctions over Tehran's nuclear program.

"Sanctions have had no impact on Iran's economic condition," Economy Minister Davoud Danesh-Jafari told Reuters on the sidelines of a meeting of the Islamic Development Bank in Tehran.

Analysts say western companies are becoming more wary of investing in Iran, the world's fourth-largest oil exporter, due to perceived political risk and increasing difficulties in securing trade finance as a result of U.S. pressure.

The state-dominated Iranian economy is also struggling with double-digit inflation, which critics blame on the government's profligate spending of petrodollars.

But Danesh-Jafari painted an upbeat picture of Iran's economy, saying foreign investment hit $10.27 billion last year.

"Iran's economy, despite unilateral economic pressure from America, has achieved stable growth ... and it is predicted that Iran's economic growth will increase," he was quoted as saying by the ISNA news agency in a speech at the conference.

He did not give details about his expectations for economic growth, which reached 6.7 percent year-on-year in the six months to September, according to the central bank.

Iran's foreign debt has declined to 13.5 percent of gross domestic product from 17.4 percent, Danesh-Jafari said according to ISNA, whose report did not specify over what time period this happened.