Citing World Bank figures on a huge GDP fall 2017-20, Gholam-Hossein Shafei has said the government needs to revise policies to stimulate competition and encourage investment.
22 hours 45 min ago
IMF: Iran would need oil at $195 a barrel to balance the budget next year
In its most recent report, the International Monetary Fund announced that Iran would need to sell its oil at $195 a barrel next year in order to balance the budget.
According to the IMF report published on Monday, Iran faces a 4.5 percent budget deficit this year and 5.1 for next year. Meanwhile, the price of Brent crude oil is $62 per barrel.
Iran is one of the world’s biggest oil producers but due to the US sanctions its oil revenue has plummeted.
The IMF had previously predicted a 9.5 percent economic shrinkage for Iran next year.
The chair of the Middle East and Central Asia at IMF told Reuters: “The estimate is that ... sanctions that were reintroduced last year and tightened this year, next year will not have an additional impact.”
Since the United States left the Iran nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA) and re-imposed heavy sanctions on Iran’s oil export and banking, the country’s oil revenue has plummeted. President Trump has repeatedly declared that he wants to reduce Iran’s oil revenue to zero.
Due to these events, Iran’s currency value plummeted, and the inflation rate increased to 35.7 percent from its usual 10 to 15 percent in Iran.
The IMF predicts that the export of goods and services from Iran will drop from $103.2 billion last year to $60.3 billion this year and $55.5 billion in 2020.
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