Corruption and mismanagement have led to a severe economic crisis in Iran, with inflation skyrocketing and the currency losing much of its value. While officials try to deny the undeniable financial calamity, state media acknowledge some aspects of the country’s worst economic crunch in a century.
“Iran’s economy is plagued by serious issues that demand authorities’ urgent attention. Average inflation rates have remained above 40% since 2018, with February point-to-point inflation exceeding 64%. Initial hopes and the miracle of a 10- to 15-point decrease in inflation without government intervention have not happened. Meanwhile, the volume of liquidity has increased from below 50 quadrillion rials to over 60 quadrillion rials within a year and a half,” Arman-e Meli newspaper acknowledged on April 26.
The Iranian regime’s supreme leader, Ali Khamenei, named the New Persian Year of 1402 the year of “controlling inflation and production growth.” Therefore, he tacitly acknowledged the country’s economic crises, debunking his own claims and those of his president, Ebrahim Raisi.
While the inflation soars, the regime has refused to increase workers’ salaries in accordance with the inflation, thus damaging the country’s production.
“The inflation in 2022 hovered around 40%, and the economic growth was about 4%. Thus, workers’ salaries should have increased by 46% in 2022. In 2023, the inflation is above 50%, and considering the 3% economic growth, workers’ salaries should rise by 55%. Yet, the government has set a 27% increase rate. This huge difference and inflation are due to the government’s lack of economic strategy, coupled with the enormous budget deficit,” wrote the state-run Etemad newspaper on April 25 in this regard.
Raisi’s government has failed to address the country’s economic issues. Raisi, who has barely passed elementary school and is known as an unscrupulous mass murderer, has been making bogus claims such as “eradicating poverty in two weeks” or calling his government, filled with criminals, “the government of deprived.”
“Despite branding itself the ‘government of the deprived,’ and while this year is supposed to be the year of controlling inflation and production growth, Raisi’s government has overseen significant price increases in areas such as water, electricity, plane tickets, currency, gas tariffs, and car services. The 2023-2024 budget law reflects an effort to raise key prices and increase the cost of goods and services, leading to further economic collapse and worsening the relationship between the system and the people,” the state-run Setar-e Sobh newspaper quoted Farshad Momeni, a regime-affiliated economist, on April 26.
“The government’s wrong policies have led to liquidity growth, plunging the Rial’s value. Private banks produce daily liquidity, contributing to inflation, and the banking system supports this trend. As a result, people face sharp price increases, making their lives harder and creating heavy economic pressure. The high inflation rate of above 50% in recent years has further aggravated the situation,” the state-run Ebtekar newspaper wrote on April 26.
“Recent years have shown clear signs of hyperinflation in the country, affecting even those with fixed incomes, such as employees and workers. The government’s lack of a proper economic management plan and strategy is currently the most critical problem. Despite naming the year 2023 ‘inflation control and production growth,’ the government has neglected this slogan and instead acted as a sponsor of inflation and price growth. For instance, the government has permitted price increases for cars, electricity, gas, and raw materials for factory production. Official approval of such price hikes only worsens inflation instead of curbing it,” the paper adds.
Watch and judge if #Iran is pacing towards #economic collapse pic.twitter.com/cfzvyb4i1C
— NCRI-FAC (@iran_policy) March 23, 2023
While the regime’s officials and pundits blame sanctions as the mere source of Iran’s economic problems, state media acknowledged in recent days that the state corruption, mismanagement, and ineptitude, have ruined Iran’s economy.
“An economy rattled with corruption, lack of capital security, non-existent property rights, a weak business environment, and widespread corruption in both government and private sectors have hindered economic growth, reduced investments, and led to capital outflows, resulting in a decline in society’s welfare, an increase in poverty, a wider wealth gap, and overall backwardness,” the state-run Sharq newspaper acknowledged on April 26.
The regime’s inability and unwillingness to address the country’s economic problem adds to society’s restiveness, prompting state media to warn about “severe consequences” amid a nationwide uprising.
“A ruling system can survive and thrive with popular support. Lacking people’s support will jeopardize a government led by the minority,” wrote Ebtekar Daily on April 25.