World Bank: Internet Restrictions and Strikes Will Ground Iran's Economy

The World Bank, in a report on factors affecting Iran's economy, stated that escalating social tensions and strikes, along with the continuation of government internet restrictions, could have long-term detrimental effects on employment and economic activities in Iran. In its latest report, the bank emphasized that due to ongoing sanctions and insufficient and limited investments, the country's GDP growth will be challenged in the medium term, amidst a persistent inflation rate of 40% and unemployment in Iran. The World Bank also pointed out the impacts of the environmental crisis on agriculture, unemployment, and food security, stating that continued environmental degradation will deepen these crises and create larger shocks to Iran's economy. The report also addressed the effects of external factors on Iran's economy, noting that the decline in global demand for oil and its price, alongside U.S. sanctions, are the main threats to Iran's economy. Analysts from the World Bank, reviewing economic statistics from Iran as reported by the Islamic Republic, indicate that the inflation rate will remain above 40%, and the rising prices of goods and food will continue. The World Bank also reported that during the COVID-19 pandemic, one million jobs were lost in Iran, and currently, the number of employed individuals is 700,000 less than during the pandemic. The report specifies that Iran's economy will experience a growth rate of 2.4% in the year 1403, which will subsequently decline to 2.1% and then to 2%. Notably, the Tasnim news agency, affiliated with the Islamic Revolutionary Guard Corps, claimed on Saturday that the new report from the Statistical Center indicates a decreasing trend in the inflation rate in Mordad, reaching 46.7%. According to the agency's claims, the annual inflation rate in Mordad has reached 46.7%, while the 12-month inflation rate ending in Tir was reported to be 47.5%. Tasnim states that the point-to-point inflation in Mordad was 39.8%, showing a slight increase compared to the point-to-point inflation in Tir. A review by Voice of America indicates that as of the time of this report, the Statistical Center has not published a new report on inflation, with the last report being from Tir of this year. Jamshid Asadi stated that the creation of money without production backing is the main reason for inflation in Iran. 'High prices, inflation, a plague on the people' is the slogan of retirees in Sanandaj. The Ministry of Labor has again opposed an increase in the minimum wage for Iranian workers. An economist stated that the government lacks the ability to control inflation. Ignoring requests for wage review, the Minister of Labor said, 'You negotiate yourselves.' Two days of work for one kilogram of meat; the food basket for workers has become 'starch-based.' Protests by retirees in several cities in Iran; 'Both the parliament and the government are lying to the nation.'