TEHRAN -- The IMF said Tuesday that Iran's economic growth has accelerated in the past 12 months on higher oil revenues, and urged structural reforms for Iran to reach its full potential.

Releasing its annual review of Iran's economy, the IMF said in a statement that the nation's GDP rose 5.6 percent in the year through March, up from 2.8 percent growth the previous year.

This was due "mainly to strong growth in the oil sector and a partial recovery in agriculture from last year's drought," the IMF said, AFP reported.

IMF executive directors said structural reforms to promote the role of the private sector and reduce the government's reliance on oil-related revenues were important to help realize Iran's economic potential.

"Containing current expenditure will be critical, notably regarding subsidies."

IMF directors also welcomed plans for Iran to implement a single exchange rate by next March, and cautioned that after that authorities should allow exchange rate policy to reflect market conditions.