While President Hassan Rouhani falsely brags about his administration’s accomplishments, statistics show Iran has had an economically disastrous decade. Contrary to his reform claims, Rouhani refused to reform the budget structure and the failing banking system during his tenure.
Under such circumstances, economists have described the 2010s as a lost decade in Iran’s fiscal history, which severely affected the livelihoods of Iranian families and drove millions of citizens below the poverty line.
“During the 2010s, we entered politics and diplomacy twice, and we defeated the enemy twice. It would not be a mistake to call this decade the decade of victory and national salvation. We were not wrong to say that this decade was the decade of progress in the country and a leap forward in production and development. A great and dramatic job has been done, ”said Rohani during the inauguration of the petrochemical plans on April 15.
Responding to Rouhani’s strange remarks, Mohammad Hadi Sobhanian, member of the scientific council of Kharazmi University, described the 2010s as “a decade lost in the Iranian economy”.
“During the 2010s, the Iranian economy experienced ebbs and flows. Therefore, when it comes to the main economic indicators, we can call the 2010s the lost decade of the Iranian economy, ”Sobhanian added.
Official statistics show that economic growth has been on average close to zero during this decade and that the company has broken inflation records. In 2019, Iran was among the six countries with inflation above 25%.
At the time, Iran was the sixth state with the highest inflation after Venezuela, Zimbabwe, Argentina, South Sudan and Sudan. In addition, the value of the Iranian national currency rial has dropped significantly.
However, that is not the whole story. According to the Central Bank of Iran (CBI) March 2021 report, the inflation rate held steady as point-to-point inflation hit 50 percent.
In other words, given the country’s lack of economic growth and an unprecedented increase in the prices of people’s living expenses, citizens are forced to reduce their basket of products every day.
According to the National Statistic Center, per capita household income declined by less than a third in the 2010s. Meanwhile, the average consumption of major foodstuffs like rice, chicken, red meat and fish has increased. decreased and the poverty rate increased.
Why has the Iranian economy deteriorated?
There are enormous reasons for such circumstances. For example, many economists believe that liquidity is the main reason for inflation. However, why has liquidity soared? Experts point to massive government budget deficits.
Others believe that the rampant printing of banknotes by banks is the main reason. To counter the banking disorders and to save their reputation, the banks distributed printed notes to countless numbers.
And a group of observers highlighting CBI’s poor decisions on the central dilemma. They explain that due to the shortage of oil revenues, the government used the reserved currencies of the CBI to offset its deficits. In this regard, the government’s debts to the CBI have increased.
On the other hand, the majority of people had lost their ability to buy currency from the government. As a result, the government was unable to offset its costs and benefits. Retail businesses could not import raw materials and equipment. The production cycle did not work. The rial was further devalued. And the country was facing rampant liquidity.
Indeed, an unsupported currency has brought the country’s financial system to the brink of collapse. According to CBI report, liquidity volume reached 33.08 quadrillion rial [$1.323 trillion], Eghtesadnews.com reported on March 7.
On the other hand, the government is constantly raising the prices of essential goods. No day goes by without sharp increases in the prices of sugar, bread, rice, edible oil and other basic commodities. In short, officials are adding insults to the injuries of people who have nothing more to lose.
Source link