IMF Predicts 6.6% Economic Growth for Iran

The International Monetary Fund (IMF) in its latest report has predicted that the increase in oil prices, along with a surge in Iran's oil exports, will result in a 6.6% economic growth for Iran. Previously, the IMF had forecasted that Iran's economic growth rate for the current solar year would be around 4.5%. According to the report published on the official IMF website, however, it is expected that Iran's GDP growth will reach 3.5% for the next solar year, as Iran's oil exports are not expected to increase and growth in the non-oil sector will also not be rapid. Iran's oil exports have doubled over the past year following the lifting of sanctions, reaching two million barrels per day. However, OPEC statistics indicate that the price of Iranian oil has decreased by nearly 13% during this period. Nevertheless, both the volume of exports has seen significant growth, and oil prices have surged above $50 since mid-December, which is approximately equal to the average global oil price last year, and this figure is expected to rise. Ali Tayebnia, Iran's Minister of Economic Affairs and Finance, announced on Saturday that the increase in Iran's economic growth has surpassed the targeted policies. According to him, a 5% economic growth rate was considered for the current year, but it has now exceeded this target. Simultaneously, Valiollah Seif, the Governor of the Central Bank of Iran, announced that Iran's economic growth in the first half of the year has reached 7.4%. Last year's economic growth in Iran was only 1%. The report adds that the inflation rate for the current solar year will average 9%, but this index will increase next year, influenced by the recent depreciation of the rial against the dollar to 11%. The report also welcomed Iran's 'strong commitment to reforming anti-money laundering and counter-terrorism financing regulations to facilitate the expansion of banking relationships.' The IMF further states that the main challenge for Iran now is to create conditions for macroeconomic stability and GDP growth. 'To achieve this goal, broad and coordinated economic reforms are necessary to support low inflation, restructure and finance banks, facilitate investment attraction, and create jobs.' The report also adds that unifying the exchange rate and controlled floating of the exchange rate will help stabilize economic growth.