Azernews.Az

Iran's economic growth rate will hit 1.5 percent in the current year, the International Monetary Fund reported.

Masood Ahmed, the director of the IMF's Middle East and Central Asia Department, the country's economic growth rate will increase to 1.5 percent after two years of contraction, IRNA news agency reported.

The inflation rate in Iran has decreased, and the foreign currency exchange rates have been stabilized as a result of effective policies taken by President Hassan Rouhani's administration, he said.

The official further added that the government's policies are aimed to improve monetary and fiscal policies and enhance efficiency and productivity in different sectors.

In April, the IMF said Iran's economy had contracted by 1.7 percent in 2013. However, the economy will come out of recession in 2014, the report added.

Business Monitor said in its April report that the Iranian economy will return to growth in 2014, as the improvement in relations with the West and better macroeconomic management will lead to an improved outlook for exports and increased business and consumer confidence.

Recent improvements in relations with the West bode well for the country's economy, which is forecast to expand by 2.9 percent in 2015, according to the report.