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Uncertainty clouds Iran recovery — IMF

Viability of the nuclear deal “could deter investment and trade with Iran”

Gulf News

Washington: The Iranian economy has had an “impressive recovery” following sanctions relief last year, though new uncertainty regarding the fate of the nuclear deal and relations with the US threaten to undermine it, the International Monetary Fund said.

Iran’s economy is expected to grow 6.6 per cent in the calendar year ending March 20 and stabilise at 4.5 per cent “over the medium-term as the recovery broadens,” the IMF said in a report released on Monday. The report also highlighted the government’s ability to maintain inflation in single digits and stabilise the foreign exchange market.

The Washington-based lender warned, however, that “renewed uncertainty” surrounding the viability of the nuclear deal between Iran and six world powers and, in particular, relations with the US, “could deter investment and trade with Iran and short-circuit the anticipated recovery.”

President Donald Trump has called the deal that lifted some key economic sanctions against Iran in January 2016 a “disaster” and Iranian officials have expressed concern that he may seek to revisit it as he promised during campaigning.

“If the agreement is derailed, the economy could risk recession,” the IMF said.