I.M.F. Study Details Perils of Iranian Economy

The International Monetary Fund issued a sobering appraisal of Iran’s economy on Wednesday, warning that years of government mismanagement aggravated by the impact of the West’s antinuclear sanctions had left the country vulnerable to anemic growth and rampant inflation that require urgent attention.

The I.M.F. appraisal was the organization’s first on-the-ground assessment of the Iranian economy in nearly three years. It was issued as Iran is seeking to undo the Western sanctions through negotiations on its disputed nuclear program.

A temporary agreement reached in November and put into effect last monthprovided some limited sanctions relief to Iran. But the basic restraints remain in force, and they have limited Iran’s ability to sell oil, its most important export, and have largely paralyzed its ability to conduct international financial transactions electronically.

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“I actually think Iran’s economy has stabilized and is on a path to a modest albeit fragile recovery due in no small part to sanctions relief and shifts in market psychology as a result of the Geneva agreement,” Mark Dubowitz, executive director of Foundation for Defense of Democracies, a Washington-based group that supports more sanctions, said in an email.

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