{"id":220135,"date":"2020-06-08T19:29:02","date_gmt":"2020-06-08T18:29:02","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=220135"},"modified":"2023-01-24T08:24:37","modified_gmt":"2023-01-24T07:24:37","slug":"majlis-research-center-irans-economy-in-freefall-and-reaching-destruction","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/majlis-research-center-irans-economy-in-freefall-and-reaching-destruction\/","title":{"rendered":"Majlis Research Center: Iran\u2019s Economy in Freefall and Reaching Destruction"},"content":{"rendered":"
\"Majlis
Economic Crisis in Iran<\/figcaption><\/figure>\n

The Iranian regime\u2019s economy is\u00a0<\/span>in\u00a0<\/span>a freefall and reaching the point of complete destruction. The regime\u2019s wasting of the\u00a0<\/span>national wealth and plundering people\u2019s assets to fund its warmongering and terrorism machine, nuclear\u00a0<\/span>activities,<\/span>\u00a0<\/span>and the Revolutionary Guards<\/a><\/span>\u00a0(IRGC<\/a>)<\/span>\u00a0has resulted in an economic catastrophe. In addition, the\u00a0<\/span>regime\u2019s institutionalized,\u00a0<\/span>systematic,<\/span>\u00a0and widespread\u00a0<\/span>corruption has increased the economic\u00a0<\/span>hardships in Iran.\u00a0<\/span>In<\/span>\u00a0such a case, the coronavirus crisis<\/a> has caused unemployment for millions of Iranians and increased economic problems.<\/span>\u00a0<\/span><\/p>\n

The Research Center<\/span><\/a>\u00a0of the Iranian regime’s parliament has prepared a report on the country’s economic situation.\u00a0<\/span>During its session on<\/span>\u00a0May\u00a0<\/span>31, the<\/span>\u00a0new parliament of\u00a0<\/span>the\u00a0<\/span>mullahs was presented<\/span>\u00a0the report<\/span>\u00a0by Mohammad\u00a0<\/span>Ghasemi<\/span>, the head of the center. The report is titled “Image of the country’s economic situation<\/span>:<\/span>\u00a0Challenges and Strategies<\/span>.<\/span>”\u00a0<\/span>Its release was<\/span>\u00a0also widely covered\u00a0<\/span>by state\u00a0<\/span>media<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n

The report, which covers the economic situation during Hassan Rouhani’s two terms in office, reports a sharp decline in people’s living standards in the 2010s. A direct presentation of a summary of the report by the head of the\u00a0<\/span>Majles<\/span>\u00a0Research Center and its extensive coverage on state-run websites affiliated with Khamenei’s fraction shows that the conflict between the IRGC Brigadier General\u00a0<\/span>Mohammad Baqer Qalibaf<\/span><\/a>, the new speaker of\u00a0<\/span>parliament<\/span>, and President Hassan Rouhani is escalating.<\/span>\u00a0<\/span><\/p>\n

According to<\/span><\/a>\u00a0<\/span>the\u00a0<\/span>state-run\u00a0<\/span>IRNA\u00a0<\/span>news<\/span>\u00a0agency, on May 31, Mohammad\u00a0<\/span>Ghasemi<\/span>, head of the Parliamentary Research Center,\u00a0<\/span>referred to<\/span>\u00a0<\/span>Iran\u2019s dire<\/span>\u00a0economic situation, including the spread of poverty in the country<\/span>\u00a0and called it an<\/span>\u00a0economic policy turmoil. “And it’s not even clear who should be accountable to parliament for the business system or the banking system.<\/span>\u00a0\u2026\u00a0<\/span>The confusion of domestic politics has confused foreign policy and strengthened short-term views,” he said.<\/span>\u00a0<\/span><\/p>\n

There is no doubt that this is part of the regime’s\u00a0<\/span>infightings over more share of power<\/span>, which seeks to take advantage of the dire economic situation and blame Hassan Rouhani’s government. But what cannot be hidden, even according to this report, is the current state of Iran’s economic decline, which is not only\u00a0<\/span>due to<\/span>\u00a0of Rouhani<\/span>\u00a0government<\/span>‘s\u00a0<\/span>bankrup<\/span>tcy<\/span>\u00a0and corrup<\/span>tion<\/span>, but also\u00a0<\/span>because of\u00a0<\/span>all corrupt organ<\/span>ization<\/span>s<\/span>\u00a0and institutions of the regime from the office of Supreme Leader Ali Khamenei with more than $200 billion in wealth, to\u00a0<\/span>the\u00a0<\/span>members of the regime’s parliament and its judiciary, and the corrupt mafia of the IRGC<\/a> terrorists who have infiltrated all aspects of Iran’s economy and<\/span>\u00a0who<\/span>\u00a0are plundering the assets of the Iranian people.<\/span>\u00a0<\/span><\/p>\n

Experts at the Center for Research, or the legislature’s think tank, have relied on statistics from the regime’s official sources to report that they have naturally tried to make parts of the country’s macroeconomic data better, including in areas such as unemployment and inflation. However, if we use the same official statistics, which do not state all the facts, we will reach miserable results.<\/span>\u00a0<\/span><\/p>\n

Unprecedented causes of Iran’s economic collapse<\/span><\/b>\u00a0<\/span><\/p>\n

– Falling GDP:<\/span><\/b>\u00a0The first factor in the country’s economic decline is the fall in\u00a0<\/span>the\u00a0<\/span>national GDP. In straightforward terms, the gross\u00a0<\/span>domestic<\/span>\u00a0product is the total value of goods and services produced in a country over one year.<\/span>\u00a0<\/span><\/p>\n

– Rising inflation:<\/span><\/b>\u00a0Severe inflationary tensions are the second cause of the country’s sinking into the black hole of poverty. The 41 years of religious dictatorship in Iran has been completely spent\u00a0<\/span>with\u00a0<\/span>inflation, and even according to official sources, the average inflation rate in the last four decades has been 20 percent, while the average inflation rate in the world has fluctuated\u00a0<\/span>at\u00a0<\/span>around 3 to 4 percent.<\/span>\u00a0<\/span><\/p>\n

According to the Parliamentary Research Center, Iran has the fourth-highest inflation rate after Venezuela, Zimbabwe, and Argentina. One of the most important factors in the continuation of high inflation in Iran is the peak of liquidity, the volume of which has recently reached over 2500 thousand billion\u00a0<\/span>tomans<\/span>\u00a0(10 thousand times\u00a0<\/span>more than what i<\/span>t<\/span>\u00a0was\u00a0<\/span>in 1979), while the volume of national production at current prices has increased only five times.<\/span>\u00a0<\/span><\/p>\n

In 2019, liquidity growth reached over 31 percent, while GDP fell by about 7.5 percent. This is the primary source of the collapse of the national currency<\/span>\u00a0and the people\u2019s<\/span>\u00a0purchasing power\u00a0<\/span>as well as<\/span>\u00a0the dramatic fall in the exchange rate of the\u00a0rial\u00a0against foreign currencies.<\/span>\u00a0<\/span><\/p>\n

Increas<\/span><\/b>e in<\/span><\/b>\u00a0the absolute poverty of the Iranian people<\/span><\/b>\u00a0<\/span><\/p>\n

The most important result of the fall in the rate of economic growth and the continuation of very high inflation is the spread of absolute poverty in Iranian society.<\/span>\u00a0<\/span><\/p>\n

In examining the inflationary recession in the Iranian economy, the role of economic sanctions such as sanctions<\/span>\u00a0on the regime\u2019s oil export<\/span>\u00a0and the banking\u00a0<\/span>system<\/span>\u00a0should be considered. These sanctions have been imposed mainly because of the regime’s\u00a0<\/span>illicit activities<\/span>. Whenever the regime renounces regional tensions, such as supporting terrorist proxy groups or trying to acquire nuclear weapons and producing and testing ballistic missiles, these sanctions would also\u00a0<\/span>be lifted<\/span>.<\/span>\u00a0<\/span><\/p>\n

On June 4, 2020, the state-run\u00a0<\/span>Eqtesad<\/span>\u00a0News website\u00a0<\/span>reported<\/span><\/a>: According to the\u00a0<\/span>Majl<\/span>i<\/span>s<\/span>\u00a0Research Center, the poverty line of four-person households in Tehran has increased from 2.5 million\u00a0<\/span>tomans<\/span>\u00a0to 4.5 million\u00a0<\/span>tomans<\/span>\u00a0in the last two years, which means that\u00a0<\/span>the\u00a0<\/span>inflation\u00a0<\/span>rate has increased by\u00a0<\/span>80%<\/span>,<\/span>\u00a0and this inflation rate\u00a0<\/span>has led to significant growth in the poverty line in Tehran and other parts of the country. This, along with a significant reduction\u00a0<\/span>of general\u00a0<\/span>income<\/span>, has led to an increase in the poverty rate over the years, and the available evidence suggests that this variable is increasing in 2019 and 2020.<\/span>\u00a0<\/span><\/p>\n

With the poverty line at such levels, many employees and retirees, and even small business owners, are under the absolute poverty line.<\/span>\u00a0<\/span><\/p>\n

The Parliamentary Research Center also reports that despite the increase in the nominal income of Iranian households between 2011 and 2019, the average purchasing power of each Iranian has decreased by about one-third during this period.\u00a0<\/span>In other words, if Iran’s total national income in 2019 is evenly distributed among the country’s population, the purchasing power of each Iranian will be 34% lower than in the first decade of 2010.<\/span>\u00a0<\/span><\/p>\n

The country’s dire economic situation and all kinds of severe crises result from widespread corruption and the rule of the religious dictatorship. Solving Iran’s economic problems and achieving economic growth can only be achieved through regime change and the establishment of freedom and democracy. This will lead to the real participation of the people in the country’s economy and the necessary stability for significant investments.<\/span>\u00a0<\/span><\/p>\n

As Mrs.\u00a0<\/span>Maryam Rajavi,\u00a0<\/span><\/a>the President-elect of\u00a0<\/span>the National Council of Resistance of Iran (NCRI)<\/span><\/a>, has said: All the promises by the mullahs to the deprived and calamity-stricken people of Iran are hollow and worthless. The only way to end poverty, destitution, and unemployment is to end the mullahs’ evil dictatorship and establish freedom and people’s sovereignty.<\/span>\u00a0<\/span><\/p>\n

\n

All the promises by the mullahs to the deprived and calamity-stricken people of #Iran<\/a> are hollow and worthless. The only way to end poverty, destitution, and unemployment is to end the mullahs\u2019 evil dictatorship and establish freedom and people\u2019s sovereignty #FreeIran2020<\/a> pic.twitter.com\/fIRdfGAIbx<\/a><\/p>\n

\u2014 Maryam Rajavi (@Maryam_Rajavi) May 21, 2020<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The Iranian regime’s economy is in a freefall and reaching the point of complete destruction. The regime’s wasting of the national wealth and plundering people’s assets to fund its warmongering and terrorism machine, […]<\/p>\n","protected":false},"author":18,"featured_media":220136,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":{"0":"post-220135","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"yoast_head":"\nMajlis Research Center: Iran\u2019s Economy in Freefall and Reaching Destruction - NCRI<\/title>\n<meta name=\"description\" content=\"The Iranian regime\u2019s economy is\u00a0in\u00a0a freefall and reaching the point of complete destruction. 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