IMF says Iran’s Economy Out of a Recession But Risks Remain

Iran’s economy rebounded out of a recession after the nuclear deal with world powers, the International Monetary Fund said on Tuesday, though uncertainty over future sanctions and problems plaguing the country’s domestic banks could cause fiscal trouble ahead.

Iran’s real gross domestic product grew by 7.4 percent, buoyed by the quick re-entry of Iranian oil on the international market, according to the IMF. Inflation also dropped to single digits while GDP growth is expected to stabilize around 4.5 percent, the IMF said.

But ordinary Iranians largely have yet to see any of the benefits from the nuclear accord, which saw some international sanctions lifted in exchange for Iran limiting its uranium enrichment. Meanwhile, concerns persist about what a harder line, promised by the administration of U.S. President Donald Trump, will mean for the Islamic Republic.

“The lifting of sanctions and (Iran’s) ambitious reform agenda are yet to produce their full beneficial impact on the Iranian economy,” Jafar Mojarrad, an IMF executive director, wrote in an addendum to the report. “Regrettably, remaining U.S. sanctions and related uncertainty have hindered the return of global banks to the Iranian market and continue to hamper large-scale investment and trade.”

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza