Economic Conditions Improving in Iran: IMF
TEHRAN (Tasnim) – A recent report by the International Monetary Fund (IMF) said there are signs of economic growth in Iran following the implementation of the Joint Comprehensive Plan of Action (JCPOA) between Tehran and world powers.
“Real GDP rebounded strongly over the first half of the year as sanctions eased post-JCPOA implementation. Oil production and exports rebounded quickly to pre-sanction levels, helping cushion the impact of low global oil prices. Increased activity in agriculture, auto production, trade and transport services has led the recovery in growth in the non-oil sector,” said the report published by the IMF on Monday.
The report was compiled from the preliminary findings of an official visit to Iran and expressed views of IMF staff members.
“Real GDP is projected to grow by at least 4.5 percent in 2016/17. The prudent monetary and fiscal policies adopted in recent years, along with favorable international food prices, allowed CPI inflation to decline to a low of 6.8 percent (y/y, point-to-point) in June 2016. Although point-to-point inflation has risen to 9.5 percent in September, on staff estimates inflation is expected to average 9.2 percent in 2016/17," it added.
The report also said that the Central Bank of Iran (CBI) should assess what additional steps it can take to absorb excess liquidity.
Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14, 2015 reached a conclusion over the text of a comprehensive 159-page deal on Tehran's nuclear program and started implementing it on January 16.
The comprehensive nuclear deal terminated all nuclear-related sanctions imposed on Iran.
