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.”