IMF doubles Iran's 2025 growth forecast despite 12-day war with Israel

July 30, 2025 - 15:44

TEHRAN - The International Monetary Fund (IMF) has doubled its forecast for Iran's economic growth in 2025 to 0.6 percent, up from 0.3 percent in its previous report, despite the economic and geopolitical fallout from a 12-day war between Iran and Israel earlier this year.

According to the latest IMF report, Iran’s economy is expected to grow by 0.6 percent this year, marking a modest but notable revision upward. The update comes just three months after the Fund had projected a 0.3 percent expansion.

The upward revision signals increased resilience in Iran’s economy despite ongoing sanctions, regional instability, and the recent brief military conflict with Israel.

The IMF projects global economic growth at 3.0 percent in 2025, down from 3.3 percent last year. It also warns of slowing momentum in major economies, including the United States and China.

The U.S. economy, which grew by 2.8 percent last year, is expected to expand by only 1.9 percent this year. The IMF attributes the slowdown in part to former President Donald Trump's tariff policies, which the Fund says are hurting U.S. economic performance in his new term.

China’s growth is also projected to cool slightly—from 5.0 percent in the previous year to 4.8 percent—reflecting ongoing structural challenges and weak global demand.

EF/MA

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