{"id":23531,"date":"2017-09-14T15:40:38","date_gmt":"2017-09-14T14:40:38","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/issues\/economy\/23531-iran-s-economy-keeps-deteriorating-amid-claims-of-growth"},"modified":"2024-02-24T20:15:35","modified_gmt":"2024-02-24T19:15:35","slug":"iran-s-economy-keeps-deteriorating-amid-claims-of-growth","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/iran-s-economy-keeps-deteriorating-amid-claims-of-growth\/","title":{"rendered":"Iran’s Economy Keeps Deteriorating Amid Claims of Growth"},"content":{"rendered":"

\"715387\"<\/p>\n

NCRI Staff<\/p>\n

NCRI –\u00a0Despite Hassan Rouhani and his cabinet members claiming about creating one million jobs each year, state media report<\/a> on deterioration of the country\u2019s critical economic conditions.<\/p>\n

State-run Vatan-e-Emrouz newspaper has acknowledged that the US Dollar is close to 4000-toman barrier, and that considering the travel currency now offered at open market rates, it will soon enter the 4000-toman channel. While state experts say that Rouhani\u2019s government has made the move to compensate for its budget deficit, the newspaper says that earning money through raising the value of foreign currencies is like putting your hand in people\u2019s pockets.\u201d (State-run Vatan-e-Emrouz newspaper, September 11, 2017)<\/p>\n

In an article titled \u201cGovernment\u2019s silence in the face of foreign currency appreciation\u201d, the newspaper writes \u201cstarted from a month ago, foreign currency appreciation reached its peak level this week, with experts believing that the US Dollar could easily enter the 4000-toman channel unless the government does something about it. Besides, offering travel currency at official rates is going to be stopped as of today, which will in turn lead to increased demand for currencies in the open market. Experts believe that such factor as increased demand, reduced bank interest rates, and government\u2019s inaction while taking advantage of the difference between official and unofficial currency rates to compensate for its budget deficit have caused the value of foreign currencies to increase.\u201d<\/p>\n

\u201cWith foreign currency appreciated, government might earn seven to 10 thousand billion tomans\u201d, says Hadi Ghavami, vice chairman of regime\u2019s Parliament Planning and Budget Committee.<\/p>\n

Meanwhile, a Revolutionary Guards\u2019 newspaper has revealed amid clashes between regime\u2019s rival bands that Rouhani\u2019s government is going to remove price tags obligation in a bid to cover the consequences of increased dollar value, a move that could burden people\u2019s lives with a new wave of increased prices. The newspaper has quoted vice chairman of regime\u2019s Parliament Planning and Budget Committee as saying that \u201cthe 37-billion-thousand-toman budget deficit forecast is the reason behind foreign currency appreciation.\u201d<\/p>\n

In addition, nearly all state media have quoted the CEO of Food Industries Trade Unions Association as saying that all commodities, except bread and milk, will no longer be subject to pricing scheme. (State-run Javan newspaper, September 11, 2017)<\/p>\n

Meanwhile, one of regime\u2019s economic media has acknowledged that \u201cour economy is currently caught in inflationary stagnation, a state in which prices keep going up while unemployment rate keeps rising as well. A fact also backed by the country\u2019s official figures.\u201d (State-run Poolnews, September 11, 2017)<\/p>\n

In the meantime, despite Rouhani and his deputy claiming about increased foreign investment, Revolutionary Guards\u2019 news agency has quoted a member of regime\u2019s chamber of commerce as saying \u201cthe conditions are not suitable for foreign investment since many of necessary infrastructures are lacking. It\u2019s being said that there\u2019s a good return on investment in our country and that the country is safe for investors, but these words alone are not going to absorb foreign investors.\u201d (Fars news agency, September 11, 2017)<\/p>\n

Hossein Raghfar, an economist close to Rouhani, points to the fundamental reason behind government\u2019s inability to improve economic conditions, saying \u201cdo most people in developed, industrial countries lacking rich mineral resources earn their livelihood through border couriering? The question is why such kinds of jobs are becoming more and more commonplace in our country every day? The main reason should be sought in the country\u2019s economy. The main source of income of country\u2019s entrepreneurs comes from such trading activities like imports, buying and selling properties, or money brokering. Such an economy is not capable of creating jobs for poor population. Likewise, a rent-oriented economy is not capable of creating industrial, productive jobs.\u201d (State-run Etemad newspaper, September 11, 2017)<\/p>\n","protected":false},"excerpt":{"rendered":"

NCRI Staff NCRI – Despite Hassan Rouhani and his cabinet members claiming about creating one million jobs each year, state media report on deterioration of the country’s critical economic conditions. 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