TEHRAN - The International Monetary Fund (IMF) has projected a modest improvement in Iran’s economic outlook, with the country’s gross domestic product (GDP) expected to grow by 1.1 percent in 2026.

According to the latest IMF report, Iran’s economy is projected to grow by only 0.3 percent in 2025. However, the Fund anticipates a rebound to 1.1 percent growth the following year.

The report also forecasts that Iran’s inflation rate will rise significantly—from 32.6 percent in 2024 to 43.3 percent in 2025, before slightly easing to 42.5 percent in 2026.

Regarding employment, the IMF estimated Iran’s unemployment rate at 7.8 percent in 2024. That figure is expected to rise to 9.5 percent in 2025 and slightly decrease to 9.2 percent in 2026.

The report comes as the IMF downgraded its global economic growth forecast from 3.3 percent to 2.8 percent, citing factors such as protectionist trade policies, including tariffs implemented during the Trump administration. The U.S. economy is projected to slow from 2.8 percent growth in 2024 to 1.8 percent in 2025.

Despite this global slowdown, the IMF expects West Asia and Central Asia to show stronger economic performance. Growth in the region is projected to rise from 2.4 percent in 2024 to 3 percent in 2025 and 3.5 percent in 2026.

EF/MA