Iran

RGE's Q1 2010 Iran Outlook

The increase in the oil price has improved the outlook for Iran, lessening its vulnerability to economic sanctions and facilitating populist policies. Iran’s economy is fragile, as inflation and unemployment remain high (both well in the double digits) and domestic demand has yet to recover from falling incomes in 2009. A stronger oil price has helped widen Iran’s current account surplus and narrow its fiscal deficit, but tighter sanctions remain a risk. Moreover, tighter domestic liquidity and weaker consumption are putting pressure on domestic banks, which are facing an increase in non-performing loans.

Read the Q1 2010 Iran Outlook.