Tehran, June 20, IRNA -- International Monetary Fund foresees real growth in Iran`s gross domestic product (GDP) which is expected to stand at 6.5 percent in 2004-05 coupled with relatively strong showings by a majority of sectors.
The Advisory Board of International Monetary Fund (IMF) which recently visited Iran said in a statement, issued on Saturday, that Iran`s economic prospect in 2004-05 is satisfactory given the higher oil income and growth in investment by private sector. The statement welcomes Iranian government`s economic reforms program based on the fourth five-year economic development plan (2005-10) and said the plans would pave the way for further economic growth and employment.
The IMF has advised Iranian officials to take necessary steps to scrap remaining forex restrictions in current account balance exchanges. It said unemployment rate has reduced in the country in 2004-05 period and gross international reserves have grown to stand at more than six months of cost for import of cargos and services.
It added that foreign account surplus however fell and inflation remained at about 15 percent in the period compared to the year before. The statement stressed the need to increase foreign reserve account assets at the time when oil prices are high on global markets.
The IMF delegation stressed the need to lower domestic liquidity rate to curb inflation, help guarantee higher and steady economic growth and create jobs in the mid-term. It also supported efforts by Iranian officials to promote its financial sector and upgrade supervising system.
Related Article: IMF Urges Quicker Economic Reforms
Tehran - P.I.N. - K.Soltani - 2004/06/20 16:39
WASHINGTON -- The International Monetary Fund (IMF) said that it agreed with Tehran's economic reform goals but argued the pace of change needed to be quicker. The fund predicted OPEC's second biggest crude exporter would maintain buoyant economic growth in the year to March 2005, with robust showings from both oil and non-oil sectors.
An IMF official said that growth is expected to be about 6.5 percent, even though there might be a slight deceleration in agriculture and probably in construction.
The Iranian government has followed a policy of economic opening, trying in particular to privatize part of the economy, which is more than 70 percent state-controlled.
Both the World Bank and IMF have supported the reforms undertaken by Tehran, especially the unification of tax levels, but have sought more reforms, notably an end to the subsidy policy for energy products and basic essentials such as bread.
In Iran, a liter of petrol costs 800 rials (nine US cents) and the state has to spend several billion dollars in subsidies to meet unchecked consumption. Iran has experienced strong economic growth in recent years, thanks largely to the high prices commanded by oil. In the last Iranian fiscal year, March 2003 to March 2004, growth was 6.7 percent.
Experts warn that Iran needs major foreign investment to reach that growth figure and to create jobs for the 800,000 young people who enter the labor market each year. More than three million Iranians are unemployed, according to official figures.
© Copyright IranNewsWatch.com
Top of Page
| 
