The International Monetary Fund says Iran’s economy faces deep structural weaknesses caused by years of mismanagement, intensified by international sanctions.
In its first review of the Iranian economy in nearly three years, the IMF said that Tehran needs to respond with a ‘prompt and vigorous’ reform program to prevent further deterioration.
‘Inflation and unemployment are high, while the corporate and banking sectors show signs of weakness,’ the statement by IMF said.
‘Iran now stands at a crossroad…. authorities should embark on a prompt and vigorous implementation of fundamental reforms to the frameworks supporting product, labour, and credit markets.’
IMF says, ‘external shocks’ could undermine the rial’s stability.
The report also said that while the economic outlook may have improved partly because of the nuclear negotiations with the 6 powers, which are scheduled to resume next week, they ‘still remain highly uncertain.’
