Expansionary Monetary, Fiscal Policies Short-Term Remedy for More Jobs: IMF

They indicated that such a measure would lead to a general rise in price levels for both consumer and capital goods in the medium-term, as well as devalue the Iranian Rial against other foreign currencies.

Considering the state of the Iranian economy and maintaining its high rate of growth to create further employment opportunities requires financial stability and commitment toward long-term structural reforms, it said. “High government expenditure financed by oil revenues must be closely watched as it would lead to increased demand and higher inflationary pressures. It would ultimately hurt the economy should there be a decline in oil prices in the future.”

IMF experts believe that the best way to reduce unemployment in Iran is to undertake structural reforms especially in the job market. It is worth noting that new jobs created in recent years were mainly due to private sector activity.

They welcomed the government’s efforts in trying to reduce the budget deficit by cutting expenditure and financing the shortfall. The team also called for measures to boost government revenues.

MR/MR

END

MNA