Iran economy stabilizing, to boom after nuclear deal: IMF

The International Monetary Fund (IMF) says Iran’s economy is stabilizing and will experience a considerably stronger growth if Tehran reaches a final nuclear deal with the six world powers.

The IMF said on Friday that Iran’s economy shrank by 1.7 percent in 2013, but estimated that it would recover in 2014 because of the Islamic Republic’s structural monetary reforms even if sanctions relief under the Geneva interim nuclear deal exist only for a short time.

Masood Ahmed, director of the IMF’s Middle East and Central Asia Department, said that Iran’s economic problems are “beginning to level off.”

“We do think that if there is a permanent improvement in that international environment…this should have an impact in terms of generating growth rates in the medium term that are substantially higher,” he added.

Iran and the five permanent members of the UN Security Council – the US, France, Britain, Russia, and China – plus Germany wrapped up their latest round of the talks aimed at reaching a comprehensive deal on the Islamic Republic’s nuclear energy program on Wednesday. Iran and the six countries agreed to meet again on May 13.

The two sides had reached an interim deal in the Swiss city of Geneva on November 24, 2013. The deal took effect on January 20.

Under the Geneva deal, the six countries undertook to provide Iran with some sanctions relief in exchange for Iran agreeing to limit certain aspects of its nuclear activities during a six-month period. It was also agreed that no nuclear-related sanctions would be imposed on Iran within the same timeframe.