The International Monetary Fund gave a rosy portrayal of Iran's economy in a report issued on Wednesday, saying it grew by 3.2 per cent in 2010-11, surprising analysts who contend that the economy is shrinking because of the global sanctions against the Islamic Republic.
The IMF report entitled "Islamic Republic of Iran: 2011 Article IV Consultation", welcomed the economic recovery, the decline in inflation, and the improvement in the external and fiscal positions in 2010/11 of the Iran.
IMF noted that the medium-term outlook remains positive on the strength of high oil prices and potential efficiency gains related to the recent subsidy reform.
The report said the country's economic growth has rebounded from a cyclical downturn in 2008-09, "spurred by a recovery in agriculture production, and higher oil prices."
Even so, the gross domestic product growth of 3.2 per cent in 2010-11 was slightly lower than the 3.5 per cent recorded in 2009-10, according...