A member of the Joint Commission for the Seventh Development Plan of the Islamic Republic has stated that 'currently, banks have almost halted investments due to inflation.' Jabbar Kouhki Nejad, a member of the Islamic Consultative Assembly, noted that if banks enter the 'economic space,' it can be predicted that 'we would have some growth,' but currently, [the entry of banks or economic growth] is not predictable. This member of the Joint Commission for the Seventh Assembly added that the '8 percent' growth predicted in the Seventh Plan is considered unattainable by many experts 'given the country's conditions.' Senior Iranian officials, including Ebrahim Raisi, the President of the Islamic Republic, have repeatedly claimed a decrease in the inflation rate in recent years, a claim that does not align with the realities presented by economic activists and experts. Olia Ali Beigi, head of the Islamic Labor Councils Association, criticized the continuation of inflation in the country on September 8, referring to the livelihood crisis of workers and stating that workers' wages barely cover '10 days of living.' Farshad Momeni, an economist, also stated on September 13, 'based on official data,' that nearly one in three Iranians is 'absolutely poor,' and for the first time in 100 years, the population of the poor in Iran has doubled in less than three years. According to a report by the Heritage Foundation website, Iran's 'economic freedom score' in 2023 is estimated at 42.2, placing Iran at 169th in economic freedom globally and 14th among 14 countries in the Middle East and North Africa. No one is willing to accept the government-imposed rent ceiling; the rampant inflation in the housing rental market is evident. The exchange rate for petrochemicals has reached 37,500 tomans; the 'Farzin dollar' is being phased out. Protests by retired government employees demanding 'freedom for imprisoned teachers' were held in at least 11 provinces. The trend of migration is escalating; from doctors and engineers to workers and drivers, people are leaving Iran. Achieving housing has become a 'dream'; 70% of Tehran households are experiencing housing poverty. Protests regarding the livelihoods of retirees in Iranian cities: 'The offspring of the elite are in America, while our children are destitute.'
Consequences of Command Economy; MP: 'Inflation' Has 'Almost' Halted Bank Investments
An Iranian MP has reported that inflation has nearly stopped bank investments, leading to concerns about economic growth. Experts doubt the government's projected 8% growth rate, citing worsening conditions for workers and rising poverty. This situation highlights the disconnect between government claims and the realities faced by ordinary Iranians.
👥 Key Players
📰 What Happened
An Iranian MP reported that inflation has nearly stopped bank investments, raising concerns about economic growth. Experts doubt the government's projected 8% growth rate, citing worsening conditions for workers and rising poverty.
- Inflation is severely impacting bank investments and economic growth prospects.
- Official claims of reduced inflation are contradicted by economic experts and activists.
💡 Why It Matters
📚 Background
Iran has been facing significant economic challenges due to sanctions, internal policy decisions, and global economic conditions. Inflation and poverty are critical issues affecting the population.
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