DUBAI - Iran will manage to bring its high inflation lower and return to growth next year despite Western sanctions over its nuclear program, according to projections from the International Monetary Fund.

The IMF forecasts, which also include a small trade surplus this year and next, suggest that although the sanctions are damaging Iran by cutting its oil exports, they are not likely to cause a collapse of its economy.

However, much of the IMF analysis is based on statistics provided by the Iranian government, which private economists say may not be reliable, and most of the report was prepared before Iran's currency, the rial, plunged by about a third against the dollar in 10 days through Oct 2.

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