Sanctions imposed by US on Iran may pose risk to oil-producing nation's economy: IMF
स्रोत: News Bharati English      तारीख: 28-Feb-2017

New Delhi, February 28: The International Monetary Fund’s Annual Report released on Monday says that the sanctions imposed by Trump administration on Iran will reduce its economic sentiment gradually. The report further said uncertainty surrounding the sanctions on Iran and its relations with the United States pose a risk to the oil-producing nation's economy.
The IMF's annual report on Iran's economy, known as the Article IV review, said "renewed uncertainty regarding sanctions is dampening sentiment." The IMF staff said in their assessment the country benefited from higher oil production and is expected to grow 6.6 percent in 2016/2017, before easing to 3.3 percent in the next year.

However, the uncertainty surrounding the nuclear agreement "especially relations with the US, could deter investment and trade with Iran and short-circuit the anticipated recovery," the report cautioned. "If the agreement is derailed, the economy could risk recession." Reimposing sanctions "would lower direct investment and capital inflows, and disconnect Iran from the global financial system.

Notably, the comments were a reference to the new sanctions the Trump administration imposed early this month on individuals and companies supporting Iran's ballistic missile program and the Revolutionary Guards military force. However, the measures from the US came after Iran test-fired a medium range missile, which the White House contends violated a UN Security Council resolution proscribing missiles that could carry a nuclear device.

Washington issued a tough warning that the United States and its allies had been "too tolerant of Iran's bad behavior" under the 2015 six-nation agreement to monitor and contain the country's nuclear weapons development. "The Trump Administration will no longer tolerate Iran's provocations that threaten our interests," former National Security Advisor Michael Flynn said early this month, before being forced to resign his post.

Importantly, Iran test-fired a medium range missile, which the White House contends violated a UN Security Council resolution proscribing missiles that could carry a nuclear device. Meanwhile, Iran said the aim of such maneuvers is defensive and aimed at improving its capabilities in the fight against terrorism and piracy.