Iran’s GDP is expected to increase up to 5.5 percent in 2016 due to the prospective lifting of economic sanctions, the International Monetary Fund (IMF) stated in a release on Monday.
Iran possesses the world’s largest gas reserves of 34 trillion cubic meters and one of the largest oil reserves of 157.8 thousand million barrels, according to the experts of major global oil and gas company BP.
“Prospects for 2016/17 are brighter, owing to the prospective lifting of economic sanctions. Higher oil production, lower costs for trade and financial transactions, and restored access to foreign assets, are expected to lift real GDP to about 4–5.5 percent next year.”
The IMF added that much of the acceleration in growth will depend on the “spillovers from increased oil production to the rest of the economy.”
Tehran is preparing to claim back its due share of the global oil market after the 2012 sanctions against its economy are dropped in early 2016.
In July, Iran signed a historic deal with the P5+1 group of international mediators, including Russia, the United States, China, the United Kingdom, France and Germany, to ensure the peaceful nature of Tehran’s nuclear program in exchange for the easing of sanctions.
Under the accord, Tehran has agreed to reduce its stock of enriched uranium, decrease the number of centrifuges in the country and reconfigure a heavy-water reactor at Arak. The deal’s implementation is being overseen by the International Atomic Energy Agency.
IMF Commends Iran’s Effort to Improve ‘Macroeconomic Conditions’
The International Monetary Fund’s Board of Directors praised the actions of the Iranian government that helped improve the country’s macroeconomic situation, the Fund also said.
“Directors commended the authorities for the progress in improving macroeconomic conditions in a difficult economic environment.”
The IMF Board noted that the expected lifting of sanctions on Iran will help to improve the economic conditions in 2016 despite the sharp drop in global oil prices. The Fund has underscored, however, the need of comprehensive economic reforms to sustain the progress toward stability.
“Directors encouraged the authorities to maintain their focus on disinflation,” the release added.