IMF lowers economic growth forecast on Iran
By Sara Rajabova
The International Monetary Fund has lowered an economic growth in Iran in the coming years.
“Growth in Iran is projected to be 0.6 percent in 2015 and 1.3 percent in 2016, a downward revision from the October 2014 WEO” IMF said in its World Economic Outlook 2015, Press TV reported.
The latest report released on April 14 also expects economic growth in the Middle East and North Africa to drop by one percent to reach 2.9 percent this financial year.
The IMF blamed this mainly on the slide in oil prices as well as regional political conflicts.
Oil prices started to fall over increased supplies by certain countries such as Saudi Arabia, the largest producer in the OPEC and a lackluster global economic growth.
OPEC, which pumps out about 40 percent of the world’s oil, has so far refrained from cutting its production to balance the market due to opposition from Saudi Arabia.
This situation has negatively affected economy of the oil-exporting countries.
The IMF said Algeria, Bahrain, Iran, Iraq, Kuwait, Libya, Oman, Qatar, Saudi Arabia, the UAE and Yemen achieved the largest growth last year; which it described as "less than expected and will keep the economies of these countries in a state of emergency."
It believes that oil-exporting countries should implement new programs to meet the reduction in crude prices and search for alternative financial incomes.
The IMF mission to Iran earlier said the macroeconomic conditions improved over the past year, with a rebound in economic activity and a decline in inflation.
It said in a statement released in February following the visit to Iran that, however, the sharp drop in global oil prices and an uncertain external environment will bring significant challenges to the country’s economy.
The global fall in oil prices have significantly affected the Iranian economy too. Another hurdle for Iran’s economic development is the international sanction imposed on the country over its nuclear energy program.
The U.S. and some of Westerns countries suspect Iran of developing a nuclear weapon - something that Iran denies.
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Sara Rajabova is AzerNews’ staff journalist, follow her on
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