The IMF predicts a short-term decline in the Iranian economy

Almaty. October 7. Silkroad News - Economic growth in Iran could fall to "minus" 0.5% by the end of 2015 from a 3% GDP growth achieved in 2014. These figures are given in the press service of the IMF, following the regular annual review of the Iranian economy, transmits IrTAG.
"At the moment, the Iranian economy is weak. The economy is likely to contract in the first half of 2015, and as a result, real GDP growth will decrease from 3% overall for 2014 to between 0.5 and "minus" 0.5% by the end of 2015, depending on the time of expected lifting of sanctions", - says Deputy Director of the IMF in the Middle East and Central Asia Martin Cerizola.
According to him, "the economic slowdown that began in the fourth quarter of 2014", is influenced by the sharp decline in world oil prices.
"Annual inflation from October 2014 to October 2015, decreased approximately by 12%, but it is expected that this figure will be about 14% by the end of the year", - he said.
However, the expert stressed that "an agreement on Iran's nuclear program and the lifting of economic sanctions will bring the country a unique opportunity to strengthen its economic achievements of the last two years". Among these successes M.Cerizola highlights the return by Tehran stability of the currency in the market and promotion of reforms for state subsidies.
"However, the economy is facing serious structural difficulties. For example, in December 2014, unemployment remains at 10.5%", - the report says.
However, the prospects for next year look much better, says an economist.
"Higher rates of oil production, lower costs of financial transactions and trade deals, restoring access to foreign assets, as expected, will increase the real GDP to about 4-5 - 5% next year", - said in a statement.
According M.Cerizola, a significant portion of this growth will be the result of increased levels of oil production in the Islamic Republic for at least 0.6 million barrels per day.
"Comprehensive reform of Iran are necessary to ensure that the lifting of economic sanctions will strengthen macroeconomic stability and lead to a high and balanced growth over the medium term", - concluded the expert.