Iran Economy News IMF: Iran’s Economy Shrinks Sharply

IMF: Iran’s Economy Shrinks Sharply

-

The International Monetary Fund

By Pooya Stone

The International Monetary Fund expects Iran’s economy to contract by a massive 9.5% in 2019.

The IMF on Tuesday, October 15, sharply downgraded growth projections for Iran, citing the impact of United States sanctions, geopolitical tensions, and low oil prices.

In its World Economic Outlook, the global lender cut forecasts for almost all countries in the Middle East and North Africa (MENA) as the region is buffeted by biting sanctions on Iran and nail-biting anxiety over last month’s attacks on Saudi oil facilities.

The IMF said Iran’s economy will contract by 9.5% this year, its worst performance since 1984 when Iran was at war with neighboring Iraq.

The IMF forecasts, published in the fund’s World Economic Outlook report, are not far from estimates given last week by the World Bank, which said the Iranian economy by the end of the 2019/20 financial year would be 90 percent smaller than it was just two years ago.

A drop in the Iranian currency following the re-imposition of sanctions has disrupted Iran’s foreign trade and boosted annual inflation, which the IMF forecasts at 35.7 percent this year.

The Iranian rial official rate is set at 42,000 rials to the dollar, but it’s market rate stood at around 115,000 against the dollar today, according to foreign exchange website Bonbast.com.

The figure is 3.5 percentage points lower than the IMF’s April projections, reflecting a rapid deterioration in Tehran’s economy after the US implemented tighter sanctions on its oil exports, the nation’s main source of income.

Iran watchers argue Iran’s crumbling economy is mainly due to economic mismanagement and corruption by officials and wasteful spending of the country’s resources on regional wars and ballistic missile development by the Revolutionary Guards.

This is the second year in a row that Iran’s economy is mired in recession after it shrank by 4.8% in 2018.

Iran has “been or continues to be experiencing very severe macroeconomic distress,” the IMF said, adding that growth in 2020 will be flat.

 

 

 

Latest news

Tehran Plays ‘Good Cop, Bad Cop’ with the West

Iranian authorities are masters at the “good cop, bad cop” strategy, a method of alternating threats and friendly gestures...

Iran Commits to Provocation Ahead of Start Date for New U.S. President

On Wednesday, January 13, South Korea’s Vice Foreign Minister Choi Jung-Kun met with a number of Iranian officials in...

Tehran Continues Abusing Prisoners

Regarding the horrible situation of human rights in Iran in 2020, the Iran Human Rights Monitor Iran-HRM.com provided a...

Iranian Infected with Hep A after Drinking Water Mixed with Sewage

Many Iranians in Khuzestan province have contracted Hepatitis A after drinking water contaminated with sewage due to recent floods...

Why Iran Does Not Purchase Covid-19 Vaccines

In Iran, media outlets controlled by the Supreme Leader Ali Khamenei try to justify the government’s refusal to purchase...

The Ayatollahs Devastate Iran’s Car Manufacturing Industry

Upon releasing their latest model, called ‘Tara’, in late December, Iran’s largest car manufacturing company, Iran Khodro (IKCO), came...

Must read

North Korean parliamentary head leaves for Iran

AFP: A North Korean delegation has left for Iran...

UK gov’t sees ‘crisis of credibility’ in Iran

AFP: Foreign Secretary David Miliband said Thursday there is...

You might also likeRELATED
Recommended to you