TEHRAN – Iran’s economy will come out of recession in 2014, the International Monetary Fund (IMF) has said in its latest World Economic Outlook report.
The Iranian economy will grow by 1.5 percent in 2014 and the growth rate will hit 2.3 percent in 2015, according to the report.
According to IMF, Iran’s economy had contracted by 1.7 percent in 2013.
Iran’s inflation rate will decrease to 23 percent in 2014 from 35.2 percent in 2013, IMF predicted.
However, the jobless rate will rise to 14 percent in 2014 from 12.9 percent in 2013.
On April 3, the IMF said in a press release that Iran has achieved considerable progress in raising per capita income and living standards in previous decades.
According to the report, since the Presidential election in mid-2013, there have been some signs of stability. The exchange rate has appreciated markedly in the bureau/parallel market. The CBI has kept a lid on base money growth thanks to tighter credit to the banking system and some fiscal consolidation, and 12-month inflation has declined to about 29 percent in January 2014.
With some positive tailwinds from the external side and some incipient signs that the pace of contraction in domestic demand is slowing, it is projected that economic activity would begin to stabilize in 2014/15, with real GDP projected to increase by 1–2 percent.
On January 23, IMF said it will resume annual evaluations of Iran’s economy, suspended by Tehran since the organization’s last mission nearly three years ago.