Islamic Republic of Iran: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Iran

IMF Staff Country Reports, February 27, 2017

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Canonical URL: Islamic Republic of Iran: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Iran

Real GDP grew 7.4 percent in the first half of 2016–17, rebounding from the 2015–16 recession.
Growth in the non-oil sector averaged 0.9 percent, despite having picked up in the second quarter.
Growth is projected to stabilize at 4.5 percent over the medium term as the recovery broadens.
The current account is forecast to remain in surplus as higher exports offset the pickup in imports related to investment.

Short-term rebound driven by higher oil production over the course of 2016–17.
Medium-term projection: growth stabilizing at 4.5 percent.
External sector: current account surplus expected to persist due to export gains counterbalancing investment-related import increases.

Oil sector: higher oil production was the primary driver of the 2016–17 rebound.
Non-oil sector: weak performance, with average growth of 0.9 percent; pickup in the second quarter but overall constrained.
Binding constraints identified: difficulties in access to financing, domestic financial sector weaknesses, and structural weaknesses.

Subjects covered include: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banking, Crime, Fiscal policy, Inflation, Oil, gas and mining taxes, Prices, Revenue administration, Taxes.
Keywords highlighted: aid job creation, Anti-money laundering and combating the financing of terrorism (AML/CFT), arrears, CR, fund, fund TA, gas and mining taxes, Global, government, government arrears, Inflation, Iran, ISCR, Oil, payment commitment, reserve asset, reserve asset position, target inflation range.