IMF Forecast: Stagflation in Iran’s Economy to Intensify

As the final phase of US sanctions against Iran is being implemented, the International Monetary Fund, in a report while pointing to the heavy consequences of these sanctions, predicted that Iran’s economy will experience severe stagflation in the current and coming years.

The International Monetary Fund, the most authoritative institution overseeing the implementation of the monetary system in the world, referring to the negative impact of the return of US sanctions on Iran’s economy, has predicted that Iran’s heavily oil-dependent economy will face negative growth of 1.5 percent in the current year, and the inflation rate of this country in 2018 will reach 29.6 percent.

According to this report, inflation in the next calendar year will have an upward trend and will reach 34.1 percent. Economic growth during this period will also reach negative 0.36 percent.

Recently, Brian Hook, head of the Iran Action Group, while outlining Washington’s next steps against Tehran, emphasized bringing Iran’s oil exports to zero.

Before the return of US sanctions, the International Monetary Fund had predicted that Iran’s economic growth in 2018 would be above 4 percent, but in its latest report, considering the decline in Iran’s oil exports, it has predicted severe stagflation for this country.

According to this report, the unemployment rate in Iran in the current year will be around 13 percent and in the coming year 14.3 percent.

Source: Voice of America