IMF sees deep weakness in Iran economy after sanctions

The IMF said Iran’s economy faces deep structural weaknesses as nuclear sanctions added to domestic challenges faced by the government. (File photo: Reuters)

The International Monetary Fund said Wednesday that Iran's economy faces deep structural weaknesses as intensified nuclear sanctions have added to other domestic challenges to the government.

In its first review of the Iranian economy in nearly three years, the IMF said the country needs to respond with a "prompt and vigorous" reform program to prevent further deterioration.

A combination of shocks, including the start of subsidy reforms, poorly funded social programs, and the intensification of trade and financial sanctions, had "weakened the economy," the IMF said.

"Inflation and unemployment are high, while the corporate and banking sectors show signs of weakness."

"Iran now stands at a crossroad.... The new authorities should embark on a prompt and vigorous implementation of fundamental reforms to the frameworks supporting product, labor, and credit markets."

Last Update: Wednesday, 20 May 2020 KSA 09:42 - GMT 06:42