IMF sees Iranian economy rebounding in 2021

October 14, 2020 - 14:29

TEHRAN – The International Monetary Fund (IMF), in its latest World Outlook Report titled “The Long and Difficult Ascend”, sees the Iranian economic growth at 3.2 percent as the global economy slowly ascends from the recession created by the coronavirus outbreak.

The international body’s estimation of Iran’s economy has improved 0.1 percent in this report compared to its previous report published in June.

According to the International Monetary Fund, next year's inflation rate in Iran will reach 30 percent, which shows a decrease of three percent compared to the fund's previous estimate for the next year.

Based on the report, the unemployment rate in Iran, which is projected at 12.2 percent for this year, is estimated to reach 12.4 percent in the next year.

The international body estimates that the world economy will end the year with a negative growth of 4.4 percent, which is an improvement of about 0.8 percent compared to the fund’s previous report.

The estimated improvement is due to increased hopes for the recovery of economies after the coronavirus pandemic and the reduction of restrictions due to the implementation of health protocols such as social distances and business closures.

Meanwhile, IMF estimates that global economic growth will reach 5.2 percent in 2021, indicating a recovery in the global economy after the pandemic.

According to the International Monetary Fund, the U.S. economy will shrink 4.3 percent this year and grow 3.1 percent next year.

This year, the economies of European countries will also experience negative growth; France and the United Kingdom will face negative growth of 9.8 percent, Italy will experience a negative 10.6 percent growth while Spain’s economy will shrink 12.8 percent.

India will record negative growth of 10.3 percent this year, according to the report.

Among the world's economies, only China will grow positively this year, with economic growth estimated at 1.9 percent.

EF/MA

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