Monday 25 January 2016

Will Iran be the rising star?

This January may become the worst January for the market in the history. The root cause is the oil price and the continued worries over the EMs. Iran's sanction has been lifted and Iran has had some positive moves this year. Iran plans to 114 Airbus jets and seeks investment in capital markets. Because of the previous sanction, the Iranian economy is not tightly linked with the rest of the world economy. Therefore, the economic slowdown of the EMs may not affect the Iranian economy. Maybe the falling oil price will reduce the profits earning from exporting oil; however, this will not damage the economy, as the profits are extra profits adding to the economy due to the lift of the sanction. Therefore, because Iran is relatively independent from the rest of the world, the Iran economy may become the new rising star among the EMs.

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