Iran’s economy has weakened as a result of “large shocks and weak macroeconomic management over the past several years.” These have had a significant impact on macroeconomic stability and growth, according to a statement by an IMF mission, which visited Tehran between 25 January and 8 February to conduct Article IV consultations. The IMF’s appraisal of the economy by a mission in Tehran is the first in nearly three years.

The shocks were associated with the implementation of the first phase of Iran’s subsidy reform, ambitious but inadequately funded social programs, and a marked deterioration in the external environment arising from the tightening of trade and financial sanctions. Coupled with high inflation and unemployment, and weak corporate and banking sectors, the shocks have exposed the structural weakness in the economy, the IMF says. (CONTINUED - 384 WORDS)