IMF: Inflation Iran rises sharply due to Tightened American Sanctions. Iran’s economy will shrink again this year, while inflation will rise sharply.
The country suffers from the tightened sanctions of the United States,
writes the International Monetary Fund (IMF) Monday in a report on economies in the Middle East and Central Asia.
Last year, the Iranian economy shrank by 3.9 percent, and for this year the IMF assumes a shrink of 6 percent.
According to Jihad Azour, director of the Middle East and Central Asia at the IMF, the country may be faced with inflation of “40 percent or more”.
The United States recently declared its intention to reduce Iranian oil exports “to zero”.
If that happens, the adverse outcomes for Iran will be even higher than predicted now.
The US imposed sanctions on Iran last year
In 2018, the US government imposed economic sanctions on Iran.
The US also cancelled the nuclear treaty with the country.
The US has also put stress on allies not to import oil from Iran from May.
Until now, the eight most significant importers of Iranian oil were allowed to purchase limited quantities.
Trump suspects that Iran produces nuclear weapons
US President Donald Trump says he suspects that Iran still secretly produces nuclear weapons, breaking the 2015 agreement.
The rate of the rial, the currency of Iran, had fallen by more than 50 percent last year.
The US penalties would have cost Iran more than 10 billion dollars in oil revenues.