Islamic Republic of Iran: Staff Report for the 2003 Article IV Consultation

Author: International Monetary Fund

Volume/Issue: Volume 2003 Issue 279

Publication date: September 2003

ISBN: 9781451818949

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Topics covered in this book

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Banks and Banking , Exports and Imports , Inflation , Economics- Macroeconomics , ISCR , CR , GDP , monetary policy , fiscal policy , central bank , Participation paper , corrective fiscal policy , increase in capital expenditure , policy response , monetary policy side , Oil prices , Inflation , Current account balance

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Summary

Domestic demand continued to grow at rapid rates, despite corrective fiscal and monetary policy measures. Although trade and financial sector reforms advanced and foreign direct investment (FDI) regulations were liberalized, there was less progress in improving the business environment, reducing labor market rigidities, and restructuring and privatizing public enterprises. IMF staff stressed the need for further advances in trade liberalization, improved fiscal management, financial system restructuring, labor market reform, privatization, and elimination of subsidies. The managed float exchange regime remains appropriate for Iran.