IMF: Iran accord to lift Mideast economy

The International Monetary Fund (IMF) says the Middle East and North Africa are set to benefit from Iran’s nuclear agreement, lifting economic growth in the region next year.

In its biannual World Economic Outlook, the IMF said growth will “pick up substantially in 2016, supported by accelerated activity in the Islamic Republic of Iran” which is the Middle East’s second largest economy.

The lifting of sanctions on Tehran would allow Iran to boost oil production and exports, leading to “a gradual improvement in the outlook for countries severely affected by conflicts such as Iraq, Libya and Yemen”, it added.

“Without sanctions, the Islamic Republic of Iran is expected to increase its capacity to 500,000 to 800,000 barrels a day within two years,” IMF said.

Iran’s energy officials say the country will be able to ramp up oil production by 1 million barrels per day within six months after the removal of the sanctions.