MEK: Iran’s Economic Crisis Worsen
According to the People’s Mujahedin of Iran (PMOI / MEK Iran), and the National Council of Resistance of Iran (NCRI), on March 9, official economic expert Mahmoud Jamsaz believes that “Iran’s economy in 2021 (1400) will be accompanied by intensifying inflation and a further decline in GDP,” based on present features and determinants of the economy.
The country’s economy has been seeing a dramatic fall
His argument, like that of many other economists, was that the country’s economy has been seeing a dramatic fall in growth for the past three years. The national currency has dropped from 3000 tomans to 25000 tomans per US dollar, a drop of eight times.
As a result, public income has dropped, and poverty and socioeconomic disparities have widened to the point where more than 60% of the population currently lives in poverty. According to officials, the poverty line is now 10 million tomans, and most incomes do not even reach this level, which is only 2.8 million tomans.
The government budget deficit’s constant growth
These estimates are more realistic about the country’s economy than President Ebrahim Raisi’s promises. According to Eghtesad Online, on August 4, these economists noted that rampant and chronic inflation has become one of the country’s primary pillars, along with: “Liquidity that has reached more than 3705 trillion tomans today and is set to break the record of 4000 trillion tomans.”
The second pillar is the government budget deficit’s constant growth, which is the source of finances for the regime’s corrupted factions that are stealing officially from the people in their favour, and the parliament seals it.
The government’s debt to the Central Bank
On August 3, the state-run website Quds reported that “Rouhani took over the government from Ahmadinejad with a budget deficit of 53,000 billion Tomans, and he will now hand over the government to a president with a budget deficit of 350,000 billion Tomans in 2021.”
The government’s debt to the Central Bank, as well as borrowing from the bank’s printing house, is enormous, and new President Ebrahim Raisi, of course, has no choice but to continue along this path of creating worthless money. Last year, the central bank produced a report detailing a 24% increase in government debt to the bank. When compared to June of the previous year, the government’s debt to the Central Bank has climbed by more than 70%.
People’s purchases of bread have dropped by 30%
And the effect on the people is that, for example, people’s purchases of bread have dropped by 30%. Iran’s citizens have long since stopped buying meat, fruit, rice, and other needs, but can they stop buying bread?
“The average price of a loaf of bread after announcing the new rate is 3,000 Tomans,” Hamshari stated on July 31. “As a result, he must lay aside approximately 100,000 tomans for the next 30 days in order to purchase bread. Assume that in these recurrent omelette breakfasts, 3 to 4 tomatoes are utilised at a time.”
monthly salary is not enough for the cost of a month
“In this case, he needs to buy about 3 to 4 kilos of tomatoes per month, the approximate price of this purchase is 30,000 tomans. By adding the price of frying oil to the cost of eating 2 omelettes a day, the cost of this ‘suicide’ reaches about 300,000 tomans per month. Not including public transportation, water, electricity, and gas, rent, etc.
“It seems that even this impossible assumption monthly salary is not enough for the cost of a month of simple living in Tehran.”