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Iran: Can The New President Raisi Resume The Troubled Economy?

August 3, 2021
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Iran: Can The New President Raisi Resume The Troubled Economy?

Solitech24434 by Solitech24434
August 3, 2021
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The new president of Iran has inherited a deeply troubled economy as Ebrahim Raisi was sworn in as the eighth president of Iran on Thursday.

Until last year many Iranian economists and analysts expected the country economic inflation to remain above 40 per cent.

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Early in July, according to a government press release, economist Masoud Nili has said in a meeting with Raisi “Unfortunately, today we are on the brink of a severe and uncontrollable inflationary situation,”

With over two-thirds of staples like meat, rice and fruits seeing an average annual price hike of at least 24 per cent, the food inflation has crossed over on June 21. – According to a report by the labour minister.

As the US sanctions the country’s access to the US currency reserves outside the country, a stagnant increase in money supply has been the primary reason for the inflation in Iran.

Similarly, the unemployment rate for all workers has increased by 9.6 per cent around Match ending, as 16.7 per cent of the per cent are youth aged 18 to 35.

It’s so critical the presidential debates in June have based the topic of inflation, inequality, corruption, and housing.

However, Raisi has promised four million houses to be built in four years in other to solve the crisis of leaving, create one million jobs annually, and work to change the outdated banking system, while also tackling the inflation by half before his administration gradually bring it down.

Iran government says it has withstood the storm of the US sanctions and the pandemic, by following its “resistance economy” to improve local production. While the central bank affirms Iran economy increased by 3.6 per cent in the previous calendar year ending in late March.

President Raisi also promised to acehive a “strong” government that would be able to exact concessions from the West during talks over the Joint Comprehensive Plan of Action (JCPOA), as the nuclear deal is formally known, and lift US sanctions for good.

In constract, economist Meysam Hashemkhani says “The whole world witnessed Trump’s withdrawal from the JCPOA and would consider the risk of something like that’s happening again in dealing with Iran,” Meysam told Al Jazeera.

He continued, “Even if they might have thought Trump was wrong, they saw what happened. So now the JCPOA must remain stable for a few years for others to believe it’s sustainable.”

He then said, “Iran has to reach strategic alliances with countries in the region in the form of long-term trade agreements lasting at least 15 years,”.

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