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IMF expects 6.6% economic growth for Iran

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
The Grand Bazaar of Tehran is an ancient venue for trade in Iran.

The International Monetary Fund (IMF) says it expects Iran’s economic growth to reach as high as 6.6 percent for the Persian calendar year that started in March 2016. 

The IMF announced in a statement that higher oil production and exports would be particularly instrumental in boosting Iran’s economic growth that was in recession last year. 

“Higher oil production and exports, after implementation of the Joint Comprehensive Plan of Action (JCPOA) should allow real GDP growth to rebound to 6.6 percent in 2016/17,” the Fund added in its statement.

“Growth is projected to ease to 3.5 percent in 2017/18 as oil production normalizes and non-oil sector growth remains modest.”

On Saturday, Iran’s Finance Minister Ali Tayyebniya said Iran’s average economic growth for the current Calendar year had already exceeded expectations and reached above 5 percent.    

Tayyebniya added that Iran’s growth had been specifically significant in sectors such as industries and agriculture. 

Other official figures show that the country’s growth stood at around 1 percent during the last Persian calendar year (March 2015/16).  

The IMF further emphasized that it expects Iran’s average inflation to stand at above 9 percent for the current Iranian calendar year that ends in March 2017.   

“The prudent policies implemented in recent years should allow inflation to average about 9 percent in 2016/17 before temporarily rising to just over 11 percent in 2017/18 due to the pass-through from recent exchange rate depreciation,” the Fund announced in its statement released at the end of an annual evaluation of the Iranian economy.  

The IMF statement further added that Iran still needed to struggle to create the conditions for a sustained growth.    

“The challenge now is to create the conditions for sustained macroeconomic stability and growth,” the Fund added.

“Comprehensive and coordinated reforms that seek to defend low and stable inflation, restructure and recapitalize banks, cast fiscal policy in a medium-term framework to support reforms, and prioritize legal and regulatory changes that facilitate investment, aid job creation, and improve governance would achieve these goals.”   

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