IMF Predicts Positive Prospects for Iran Economy Growth

In its first review of the Iranian economy in nearly three years, the IMF said the interim deal between Iran and the sextet of world powers has given the country’s economy a boost.

“Prospects for 2014/15 have improved with the interim P5+1 agreement but still remain highly uncertain,” Martin Cerisola, IMF assistant director for the Middle East and Central Asia, said in a statement on Wednesday.

On November 24, Iran and the group G 5+1 (the five permanent UN Security Council members plus Germany, also known as P5+1) reached a six-month deal, know as Geneva agreement, on Iran’s nuclear program.

The breakthrough deal, which has come into effect since January 20, stipulates that over the course of six months, Iran and the six countries will draw up a comprehensive nuclear deal which will lead to a lifting of the whole sanctions on Iran.

The two sides are due to begin a new round of talks later this month, aimed at working out a final agreement on Iran’s peaceful nuclear program.

Cerisola said Iran’s economy may grow between 1-2 percent in the next Iranian year (will start on March 20) after it contracted for two years.

The IMF statement further said that Iran’s inflation rate has dropped and predicted that unemployment rate will also fall.

It warned, however, that there are still challenges ahead and that Tehran needed to carry out vigorous economic reforms.