MEK Iran : Central Bank Claims the Country’s Economy is Recovering
Last month, we were confronted with an odd allegation from Iran’s Central Bank. Following statistics published by the regime’s Central Bank, the regime’s president Ebrahim Raisi admitted that the country is witnessing “the appearance of signs of the end of the recession and the return of economic prosperity,” despite the fact that all economic statistics point to the country’s economy collapsing and more than 60 million people living in poverty.
If we try hard, we can attain an economic growth
Following these allegations, some of the regime’s state-run newspapers used them to shift public attention away from the country’s true circumstances.”Despite the effects of the coronavirus and sanctions, the country’s economic growth is on the rise, and it has paved the way out of the recession.” On October 24, the state-run news agency ILNA said, “Controlling and directing liquidity to production, controlling inflation, lowering prices, and stabilizing various markets can bring the economy to a complete exit from the recession and bring the economy to the shore of calm.”
“The main emphasis in the 2022 plan is on achieving economic growth,” said the chairman of Iran’s Program and Budget Organization in mid-September. If we try hard enough, we can attain an economic growth rate of 8%.”
Iran is now on a firm footing in terms of economy
Furthermore, at a virtual meeting with the CEO of the International Monetary Fund, Ministers of Economy, and leaders of regional financial institutions in the Manap constituency, the Governor of the Central Bank said: “Iran is now on a firm footing in terms of economic recovery.” According to the state-run news agency ISNA on October 24, Rouhani cited Iran’s GDP growth of 6.2 percent in the second quarter of 2021, “which indicates that the Iranian economy has significantly emerged from the recession and is moving toward recovery.”
However, the country’s reality does not paint a rosy picture of the economy. Economic data also reveal that the country’s investment trend has slowed and that capital depreciation is occurring.
less investment has been formed in the country each year
This occurrence has grave implications for the country’s economy, both macro and micro, and poses a threat to families’ well-being. According to the state-run website Tejarat News, an economist said on October 14:
“Since the beginning of the 2000s, less investment has been formed in the country each year, with a negative number of 4.79 percent last year, according to a report by the Tehran Chamber of Commerce.
“The lowest amount of investment in the country is registered in 2020, with 100 trillion tomans ($3.5 billion), indicating a significant decrease.” The investment difference is so large that even if the country’s yearly investment climbs by 10% this year, it will only reach (the level of) the 2000s in 2027.”
Raisi’s economic plans are simply failing policies of 42 years
This economic element is sufficient to demonstrate the severity of the crisis, as even massive investment over the next few years will only bring the situation back to that of a decade ago. However, this is only the tip of the iceberg in terms of the country’s economic woes.
Even if the regime’s economic and monetary officials claim that the recession is over, this will not change the reality. All of Raisi’s government’s economic plans are simply a continuation of failing policies from the previous 42 years.
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