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IMF Expects Iranian Surplus in Current Account Balance Next Year

IMF Expects Iranian Surplus in Current Account Balance Next YearIMF Expects Iranian Surplus in Current Account Balance Next Year

The International Monetary Fund expects Iran's current account balance (CAB) to bounce back to the positive territory (surplus) in 2021.
In its latest World Economic Outlook report, the IMF projects Iran's CAB to stand at 0.3% of the country's GDP next year. The 2020 forecast is at -0.5% of GDP (deficit).
According to IMF, Iran's current account balance stood at 1.1% of GDP in 2019.
Examining the current account balance of a country's balance of payment can provide a good idea of its economic activity. It includes activity around a country's industries, capital market, services and money entering the country from other governments or through remittances.
Calculating a country's CAB will tell us if it has a deficit or a surplus.
Although a deficit does not necessarily mean the economy is weak and a surplus automatically means that the economy is strong, a surplus is indicative of an economy that is a net creditor to the rest of the world. This means the country is likely providing an abundance of resources to other economies and is owed money in return.
A CAB deficit reflects a government and an economy that is a net debtor to the rest of the world. It is investing more than it is saving and is using resources from other economies to meet its domestic consumption and investment requirements, according to Investopedia.
 

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