IMF expects Iran’s economy to grow by 1.1% in 2026
The International Monetary Fund (IMF) expects Iran’s economy to perform better this year compared to 2025.
Latest IMF projections cited in a Monday report by the Tasnim News Agency showed that Iran’s economy would expand by 1.1% in 2026, up from a growth rate of 0.3% in the previous year.
The forecast comes as the World Bank has projected Iran’s economy to shrink by 1.5% this year. The institution has also estimated that the economy contracted by 1.1% last year.
The projections also follow forecasts by Iran’s official statistics agency (SCI), published in September, which pointed to a negative growth rate for the country’s economy for the first time in four years in the quarter ending late June 2025.
SCI’s data released in late September showed that Iran’s gross domestic product reached 24,270 trillion rials (over $22.26 billion at free market exchange rates from late summer) in the second quarter, down 0.1% from the same period in the previous year.
The contraction has been attributed to a decline in oil export revenues due to lower international prices, as well as regional tensions affecting shipping and trade.
Iran has also been experiencing higher inflation rates in recent months due to these factors and reduced oil export revenues.
Latest IMF forecasts suggest Iran could return to the pattern of positive growth seen since the second half of 2020, two years after the United States announced sweeping sanctions.
The IMF considers data obtained from the SCI and the Central Bank of Iran in its economic growth calculations.
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