CBI gov­er­nor dis­misses IMF fore­cast of Iran’s econ­omy

Iran Daily - - Domestic Economy -

Wgov­er­nor of the Cen­tral Bank of Iran Ab­dol­naser Hem­mati cat­e­gor­i­cally dis­missed a re­cent fore­cast by the In­ter­na­tional Mone­tary Fund (IMF) about Iran’s econ­omy.

“Even CBI’S most neg­a­tive sce­nar­ios can­not con­firm the fore­cast of mi­nus six per­cent eco­nomic growth for Iran,” Hem­mati said in re­ac­tion to IMF’S fore­cast, re­ported Fars News Agency.

In its very re­cent fore­cast on world econ­omy, IMF has said that Iran’s gross do­mes­tic prod­uct (GDP) will de­cline by about six per­cent in 2020.

“IMF has made a mis­take as it did so last year,” the CBI gov­er­nor added.

On Wed­nes­day, the IMF slashed its fore­cast for an­nual global eco­nomic growth as the coro­n­avirus cases spike in the US and de­vel­op­ing coun­tries.

The IMF is now pro­ject­ing global eco­nomic GDP to fall 4.9 per­cent in 2020, 1.9 per­cent­age points higher than the three per­cent de­cline the in­ter­na­tional lender pro­jected in April, The Hill re­ported.

While the IMF ex­pects global GDP growth to re­bound to 5.4 per­cent next year, that rate is still 6.5 per­cent­age points be­low the growth level pro­jected by the IMF in Jan­uary.

The emer­gence of the pan­demic and the shut­downs im­posed to fight it will cost the global econ­omy more than $12 tril­lion over the next two years, said IMF chief econ­o­mist Gita Gopinath in a Wed­nes­day ar­ti­cle.

“The COVID-19 pan­demic pushed economies into a Great Lock­down, which helped con­tain the virus and save lives, but also trig­gered the worst re­ces­sion since the Great De­pres­sion,” Gopinath wrote.

“Over 75 per­cent of coun­tries are now re­open­ing at the same time as the pan­demic is in­ten­si­fy­ing in many emerg­ing mar­ket and de­vel­op­ing economies. Sev­eral coun­tries have started to re­cover. How­ever, in the ab­sence of a med­i­cal so­lu­tion, the strength of the re­cov­ery is highly un­cer­tain and the im­pact on sec­tors and coun­tries un­even,” she added.

IRAN DAILY

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