Iran economy stabilising, to soar if deal reached: IMF

WASHINGTON, Apr 12 (AFP): Iran's economy is stabilising and will post substantially stronger growth if the Islamic republic reaches a comprehensive deal with world powers on its nuclear program, the IMF said Friday.

The International Monetary Fund estimates that Iran's economy shrank by 1.7 percent in 2013, the second straight year of contraction after the United States and its allies imposed sweeping sanctions.

But the IMF projects that Iran's economy will rebound by 1.5 percent in the current year-even if sanctions relief under a temporary deal proves short- lived-as Tehran undertakes reforms.

Masood Ahmed, director of the IMF's Middle East and Central Asia department, said that Iran's economic woes were "beginning to level off" but that much depends on whether the country reaches a comprehensive nuclear deal.