Iran's Economy To Lose 9.5% In 2019 Amid US Sanctions - IMF

Iran's Economy to Lose 9.5% in 2019 Amid US Sanctions - IMF

Iran's economic growth forecast has been revised downward by more than three percent due to the tightening of US sanctions, the International Monetary Fund (IMF) said on Tuesday

WASHINGTON (Pakistan Point News / Sputnik - 15th October, 2019) Iran's economic growth forecast has been revised downward by more than three percent due to the tightening of US sanctions, the International Monetary Fund (IMF) said on Tuesday.

The Iranian economy is now expected to shrink by 9.5 percent this year, the IMF revealed in its World Economic Outlook (WEO) report. The 3.5 percent drop from the April forecast reflects "the effect of tighter US sanctions," the fund said.

Iran's economy should stop falling in 2020 with the fund projecting a growth rate of zero. Modest growth is expected to resume after recession, according to the IMF.

Relations between the United States and Iran are strained over several issues including Washington's exit from the Joint Comprehensive Plan of Action and claims that Tehran attacked oil facilities in Saudi Arabia this September.

Since the unilateral withdrawal from the Iran nuclear deal in May 2018, the United States has reinstated sanctions on Tehran. As part of the maximum pressure on Iran, it has been expanding sanctions targeting Iran's economy, including its oil and metal industries, financial and banking sectors, trade and weapons development, in addition to travel bans and asset freezes.