Sunday, June 23, 2024

IMF predicts Iran’s inflation to shrink in 2024

A report by the International Monetary Fund (IMF) says that the soaring inflation rates in Iran will fall significantly with an increase in demand for Iranian oil in major Asian economies and amid a gradual drop in consumer prices across the globe.

Figures from an IMF report cited by Iran’s official IRNA agency on Wednesday showed that the international lender expects Iran’s inflation rate would drop to around 30% in 2024, down from 49% in 2022 and lower than a figure of 42% estimated for this year.

It said the IMF expects more than 76% of the world’s economies would experience a gradual drop in their inflation rates in 2023 and in next year.

However, regional economies like Turkey would still face higher inflation rates compared to Iran in the two years to the end of 2024.

The IMF report projected that Iran’s economy would continue to expand at a stable rate of 2% in 2023 and in 2024, half a percentage point lower than the growth figure reported for last year.

However, the lender stipulated that high economic growth rates expected for countries like China and India would translate into increased demand for Iranian oil and would boost the country’s economic prospects next year despite the fact that oil prices are expected to fall to levels below $70 a barrel in 2024.

The IRNA report noted that lower oil prices would hardly impact Iran’s economy in the near future as the country has significantly cut its reliance on oil revenues.

It added, however, that Iran’s accession earlier this month to the Shanghai Cooperation Organisation, a major political and economic bloc of countries led by China and India, would create major trade and economic benefits for Iran given that those economies are expected to expand at a record pace in the near future.

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