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IMF has also praised the successful implementation of Targeted Subsidy Reform Plan as it will have a controlling effect on inflation in the long run. According to the report, Iran’s current accounts balance constituted 8.9 percent of the country’s GDP in 2011. The figure is expected to drop to 6.6 percent in 2012 and 4.2 percent in the following year. |
Iran enjoyed a 2.5-percent economic growth rate in 2011 which is expected to further increase in 2012 despite the sanctions imposed against the Islamic Republic, International Monetary Fund (IMF) said in its latest report. According to the IMF’s Global Economic Prospects, Iran’s economic growth rate in 2011 was well above the Middle East average which amounted to 1.7 percent in the same year. IMF also projected that Iran will experience a 2.7-percent growth in 2012 and a 3.1-percent growth in the year after when the Middle East average economic growth is expected to reach 2.3 percent. Dismissing the effect of sanctions on Iran’s macroeconomic indicators, IMF noted that the country’s economic growth rate increased to 2.5 percent in 2011 thanks to a hike in oil prices and a rise in domestic agricultural output. Underlining a downward trend in global economic growth over the past year, the report noted that the figure fell from 4.1 percent in 2010 to 2.7 percent in 2011 as it is expected to be further reduced to 2.5 percent in 2012.