IMF projects Iran’s inflation to decline to 31.7 percent this year
Date
11/4/2024 7:24:06 AM
(MENAFN) The International Monetary Fund (IMF) has provided an optimistic outlook for Iran's economic trajectory in its latest World Economic Outlook report, projecting a significant decline in the country's inflation rate. According to the IMF, inflation is expected to drop to 31.7 percent in 2024, down from 40.7 percent in the previous year. This reduction indicates a gradual stabilization in the economy, which has faced high inflationary pressures in recent years. The IMF's estimates reflect a broader trend of improving economic conditions in Iran.
In addition to the inflation forecast, the IMF has also revised its prediction for Iran's gross domestic product (GDP) growth. The organization now expects the GDP to expand by 3.7 percent this year, an increase from its earlier estimate of 3.3 percent announced in July. This upward revision suggests that economic activities are gaining momentum, contributing to a more favorable economic environment for the country.
The IMF's assessment also includes an outlook on Iran's current account balance, which is projected to reach 2.9 percent of GDP this year, a slight increase from 2.8 percent last year. This improvement in the current account balance indicates a healthier trade position, potentially bolstered by exports and other economic activities.
Domestically, the Statistical Center of Iran (SCI) has reported that the average inflation rate for the twelve-month period ending on October 21 was 33.6 percent, marking a decrease of 0.6 percent from the previous twelve-month period. The SCI also noted that the point-to-point inflation rate stood at 31.6 percent in the seventh month of the Iranian calendar, indicating that families experienced a 31.6 percent increase in the cost of purchasing the same basket of goods and services compared to the same month the previous year. Furthermore, the point-to-point inflation rate rose by 0.4 percent from the prior month, highlighting ongoing inflationary challenges even as the overall trend appears to be moving in a more favorable direction. In a broader context, the SCI reported that Iran's economy grew by 5.7 percent in the previous Iranian calendar year, which ended on March 19, marking the highest growth rate since 2017. This growth reflects a recovery phase for the Iranian economy as it navigates various challenges.
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