Iran Economy NewsIMF: Iran economy shrinking

IMF: Iran economy shrinking


IMF: Iran economy shrinking

Iran Focus

London, 9 Oct – The International Monetary Fund (IMF) has estimated that the Iranian economy fell into recession this year, thanks to renewed US sanctions, something that will only get worse next year.

The IMF released its World Economic Outlook late on October 8, which stated that Iran’s oil-driven economy is expected to decrease by 1.5% this year, as a result of falling oil exports, something that will only continue to drop in 2019, leading to a shrinkage of 3.6% in the Iranian economy next year.

Before Donald Trump pulled out of the 2015 nuclear deal in May and promised to reinstate sanctions, the IMF had predicted a 4% growth in the Iranian economy in 2018 and 2019.

They wrote that the projected contraction in the Iranian economy is thanks to “reduced oil production” under the sanctions.

The US has already imposed the first round of sanctions on the Iranian economy and has warned importers of Iranian oil to start looking for other suppliers before the sanctions targeting Iran’s oil industry come into play on November 5.
The sanctions being reimposed were originally levied by President Barack Obama, but were lifted under the 2015 nuclear deal between Iran and six world powers (the US, Russia, China, Britain, Germany, and France), in exchange for restrictions on Iran’s nuclear programme that Trump says were never actually respected.

Iran’s exports of crude oil, which peaked at 2.5 million barrels per day (bpd) following the lifting of sanctions, have dropped by more than 500,000 bpd already and are expected to drop further when the US sanctions targeting Iranian oil go into place.

The Trump administration have said that they want Iranian oil exports reduced to “zero” before sanctions go into effect and are refusing to offer sanctions waivers, which is why many companies (like France’s Total) and many countries (like South Korea) have already pulled out of deals or stopped importing Iranian oil altogether.

The IMF has also reduced its growth forecast for the Middle East region as a whole, citing a knock-on effect from the Iranian slump and soaring energy costs due to increased oil prices. However, this doesn’t appear to take into account the fact that many other Middle Eastern countries are producers of oil or would benefit from Iran’s lack of resources by no longer having the mullahs interfere in the affairs of their sovereign state.

The IMF also predicted a fall in the economies of the US and China.

Latest news

Iran Is on the Brink of a Revolution

The wall of fear has been broken. In many cities across Iran, women are taking to the streets, leading...

Iran’s Regime Claims To Fill Global Energy Gap Despite Crippled Petroleum Sector

In recent weeks, the Iranian regime’s officials have been constantly exaggerating their huge capacity in oil and gas reserves...

What Is Happening in Iran?

Following the brutal killing of Masha Amini, the Iranian people have once again united to fight and defeat the...

Iran Regime’s Ministry of Culture’s Decision To Eliminate Children’s Intellectual Centers

With the so-called ‘Cultural Revolution’ which took place between 1980 and 1983, the Iranian regime tried to purge the...

Water Shortage Crisis and the Destruction of Iran’s Water Resources

Iran is currently suffering from a number of dangerous natural disasters. One of the most worrying is the drying...

Economic Freedom Under the Rule of the Mullahs in Iran

The Fraser institute published its annual report of the index of economic freedom on September 8, which measured the...

Must read

Iran’s leader condemns West for not making nuclear concessions

Reuters: Iran's supreme leader criticized Western powers on Thursday...

Obama’s nuclear remark was ‘cowboy’ talk: Tehran

AFP: Iran's conservative parliamentary speaker Ali Larijani on Thursday...

You might also likeRELATED
Recommended to you