IMF reports on "Impressive Recovery" of Iran economy, warns about "Uncertainty"
The Iranian economy has had an “impressive recovery” following sanctions relief last year, though new uncertainty regarding the fate of the nuclear deal and relations with the U.S. threaten to undermine it, the International Monetary Fund said.
Iran’s economy is expected to grow 6.6 percent in the calendar year ending March 20 and stabilize at 4.5 percent "over the medium-term as the recovery broadens,” the IMF said in a report released on Monday. The report also highlighted the government’s ability to maintain inflation in single digits and stabilize the foreign exchange market.
The Washington-based lender warned, however, that "renewed uncertainty” surrounding the viability of the nuclear deal between Iran and six world powers and, in particular, relations with the U.S., "could deter investment and trade with Iran and short-circuit the anticipated recovery.”
"If the agreement is derailed, the economy could risk recession,” the IMF said.
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