Speaker of Parliament: The General Economic Situation in Iran is Not Good

The Speaker of the Iranian Parliament states that the general economic situation in Iran is 'not good' and if this situation continues, the Islamic Republic will not achieve the goals of the 20-year outlook. According to Fars News Agency, Ali Larijani on Tuesday, August 3, at a conference of the Board of Trustees of Medical Sciences Universities across the country, announced the economic indicators of Iran and criticized the current state of the country's economy. He added that 'these statistics show that with this trend, we will not reach the goals of the 20-year outlook, and the economic situation of the country needs transformation.' Larijani stated that Iran's GDP growth ranking in the region is 10th out of 24 countries and 84th in the world, indicating that Article 44 of the Constitution was not 'properly' implemented. He announced Iran's ranking in economic competitiveness among 20 regional countries as 13th, adding that Iran ranks 76th globally in this regard. He also mentioned that 'in economic freedom, we rank 22nd out of 22 countries in the region and 174th in the world.' Larijani added that Iran ranks 9th in unemployment among 10 regional countries and 90th in the world. According to the Speaker, in terms of inflation rate, Iran ranks 19th out of 24 countries in the region and 158th out of 189 countries in the world. Ahmad Alavi, an economics professor in Sweden, told Radio Farda that although the Speaker's criticisms are justified and repetitive, Larijani does not mention the role of the Parliament in this inefficiency. This is not the first time that the economic inefficiency of Iran has been acknowledged, and there is almost consensus among government officials on it. However, the problem is that these officials rarely refer to the fundamental factors of this inefficiency. The failure of the economic model referred to as 'Islamic' or 'resistant', the rentier structure of the economy, the dominance of the government and quasi-governmental institutions, instability of economic policies, politicization of the economy, international isolation, and international tensions are among the main reasons for this inefficiency. More than 70 Iranian economists also warned in a letter to Hassan Rouhani, the President of Iran, about the impact of 'political pressures and bargaining' in selecting the economic team of the twelfth government, especially in key economic positions. Larijani, in another part of his speech, considered the country's 'current costs' to be high and stated that 'services are also provided at a high cost.' The Speaker called on Iran's elites to understand the 'economic situation of the country' and to assist the authorities in improving this situation. Some economic experts believe that if the decline in oil prices continues, the economic growth rate in Iran will be limited to a range of zero to two percent. At the same time, the fall in oil prices could lead to an increase in the budget deficit in the year 1396, which is based on oil priced above $50 per barrel. After the expansion of international sanctions against Iran during Mahmoud Ahmadinejad's presidency, Ali Larijani has repeatedly made clear statements about the disordered economic situation in Iran. For instance, in Esfand 1390, he stated that 'the current inflation in the country has some issues, and if the country's economy had proper accounting, the current state of inflation would not be as it is, which indicates a weakness in the country's economic management.' He also announced in two separate speeches on Aban 8 and 15, 1391, that the country is experiencing 'economic and financial drought' and has little 'maneuvering power' in financial matters. Larijani criticized the economic indicators after the revolution in November 1394, stating that the economic structure of the Islamic Republic has problems even considering the war and sanctions periods. The pursuit of the controversial nuclear program in Iran, which eventually led to the Vienna nuclear agreement after prolonged negotiations, imposed a series of 'stingy economic sanctions' on Iran, which, although halted after the Vienna agreement, continue to affect Iran's economy and have forced Iranian officials to pursue a program known as resistant economy. Ali Khamenei, the leader of the Islamic Republic, has repeatedly emphasized the implementation of the 'resistant economy' plan, which aims to withstand the Iranian economy against pressures from international sanctions.