The recent nuclear agreement between Iran and the P5+1 has rekindled investors’ interest in the Islamic Republic. In this Focus, we take a closer look at the outlook for Iran’s economy and explain that, while growth could be quite strong over the next few years, sustaining rapid growth over the longer term is likely to be difficult. Moreover, the country’s political environment, and concerns that Tehran might renege on the nuclear deal, will continue to cloud the outlook.
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