IranDaily: The International Monetary Fund (IMF) expects Iran’s economy to expand by 1.1% in 2026, improving on its projected 0.3% growth for 2025, according to the fund’s latest World Economic Outlook report.
The IMF’s assessment, reported by Tasnim News Agency, contrasts sharply with projections from the World Bank. While the IMF sees modest expansion in both years, the World Bank estimates Iran’s economy contracted by 1.1% in 2025 and forecasts a further decline to negative 1.5% growth in 2026. The divergence highlights markedly different outlooks between the two major international financial institutions regarding Iran’s near-term economic trajectory. The IMF anticipates stronger performance in 2026 compared to 2025, whereas the World Bank projects a worsening economic situation over the same period.
The World Bank’s report in December also indicated that Iran’s external debt declined by 2.5% in 2024, totaling $9.654 billion, marking a rare reduction amid rising debt levels in developing countries.
The report, released by the World Bank on the status of debt in developing economies, showed that total external debt for these countries increased by 1.1% last year, reaching $8.9 trillion, about $110 billion higher than in 2023. While overall debt in developing countries grew, Iran’s external obligations dropped by $247 million from roughly $9.901 billion in 2023 to $9.654 billion in 2024. Despite Western sanctions, Iran has managed not only to avoid increasing its foreign debt in recent years but also to reduce it significantly, from around $19 billion in 2010 to more than $9 billion in 2024.