EghtesadOnline: The government is suffering from severe budget deficit which has driven up inflation to an unprecedented level. Iran is likely to see higher inflation rates in the future.
EghtesadOnline: In the Iranian economy, political and ideological issues have become the prime concerns of economic decision-makers, which is a repeat of the Soviet Union experience and can take the economy into dangerous territory.
EghtesadOnline: Governments’ appropriation of the foreign exchange resources of the National Development Fund of Iran, the country’s sovereign wealth fund, has been rising constantly over the past few years, such that the fund now accounts for a significant part of the budget, Mehdi Pazouki, an economic expert, said in a write-up for the Persian daily Jahan-e Sanat. A translation of the text follows:
EghtesadOnline: Most economic experts concur that the government’s distribution of cheap dollar was a telling example of public fund misuse both regarding 25 items that were to be imported with the subsidized forex and people who were entrusted with the responsibility of importing them.
EghtesadOnline: Because of the failing subsidy system in Iran, some high-income individuals have raced ahead while those who fall into low-income deciles have been left behind and become poorer, Vahid Shaqaqi-Shahri, an economist and university professor, says.
EghtesadOnline: The economic priorities of the new government are: formation of its economic team and urgent actions, according to Ali Marvi, the director of Sharif Business Think Tank.
EghtesadOnline: The new government needs to address super challenges, as the country will not be an oil exporter by the end of the next decade, says Vahid Shaqaqi-Shahri, an economist and university professor.
EghtesadOnline: Unusually large volumes of liquidity is flowing into non-productive sectors and speculative markets, instead of boosting manufactures, an economist says.
EghtesadOnline: Rescue packages introduced in the US and European countries following the coronavirus outbreak are designed to make compliance with social-distancing order possible for people and business-owners instead of providing compensation for those hit by the pandemic, a former senior aide to President Hassan Rouhani says.
EghtesadOnline: Tehran is one of the top five cities in the world to have improved by 5 percentage points or more in livability over the past five years, according to the Economist Intelligence Unit.