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The confluence of economic crises facing Iran and its dire consequences for the ruling establishment continues to compel state media and officials to openly discuss the deteriorating situation and issue stark warnings for the regime’s leadership to heed and act before it’s too late. These admissions provide a stark contrast to the typical narrative of economic stability often portrayed by the government of Ebrahim Raisi.
Ahmad Hatami Yazd, a state-affiliated expert, confessed to the “wave of severe inflation” during an interview with Khabar Online on April 22. He said, “The situation has led to an increase in poverty and misery in the society and has divided the community into two classes: the poor and the very wealthy.”
Yazd further elaborated on the gravity of the economic decline, stating, “Unfortunately, in the past four decades, the value of the national currency in Iran has decreased by 10,000 times. The implication of this event is actually the decline in people’s purchasing power.”
Yadollah Faraji, a labor activist, highlighted the disparity in living standards, stating, “When the poverty line exceeds 30 million tomans, retirees with only 10 million can barely survive, and even with 15 million, they cannot live for half a month.”
Citing regime statistics on April 25, state-affiliated economist Farshad Momeni revealed the staggering reality of poverty in Iran, stating, “89% of Iran’s poor population are either current or former workers. This figure is alarming! It means they are not unemployed but have jobs that are unable to meet their basic needs in terms of income.”
The Iranian regime's outward projection masks internal fragility and instability. Its external interventions veil the critical state within, exporting crises beyond borders. A brief analysis of #Iran's socio-economic and political landscape reveals this stark truth. pic.twitter.com/XTyRPeHn7r
— NCRI-FAC (@iran_policy) January 31, 2024
Momeni also took a dig at Ebrahim Raisi, saying, “We see the president’s old rhetoric on social media, where he wants to ridicule the previous government and addresses the former government, saying, ‘You did something that caused the dollar to reach 5,000 tomans.’ But now, how is the state of the currency now?”
He warned of dire prospects ahead, stating, “In these circumstances, challenges much beyond what is currently imagined will emerge. They say this trend indicates sinking into a quagmire.”
Meanwhile, the state-run website Asr-e Iran warned about soaring inflation in its Friday, April 25 edition, stating, “In the year 1403 (March 2024-March 2025), do not expect a decrease in currency prices or inflation rates. Economic growth will not increase either. The forces accelerating liquidity growth are still active in Iran’s economy. Our economy is in a very dangerous inflationary spiral, and external shocks such as currency fluctuations or regional conflicts can turn the nightmare of hyperinflation into reality.”
On the other hand, recent reports reveal recommendations from the Tehran Province Water and Wastewater Company urging citizens to store a minimum of 75 liters of water per person in anticipation of impending “water rationing” in the coming months due to the aging water network in Tehran and a 10% decrease in rainfall compared to last year.
Additionally, state media have been reporting on the continued crisis of rising rental prices in the housing market, announcing a 42% increase in rent in the current year compared to the same month in 1402 (March 2023-March 2024).
Watch and judge about Ebrahim Raisi's #economic achievements for the people of #Iran pic.twitter.com/WLH7caed1A
— NCRI-FAC (@iran_policy) August 25, 2023
“Donya-e-Eqtesad” newspaper commented on this trend, stating that monthly inflation is still on the rise, and the cost of renting a house in the country increased by 1.7% compared to the end of last year.
The admissions by Iranian state media and officials serve as a stark acknowledgment of the economic hurdles confronting the nation, marking a notable shift from the customary narrative of prosperity propagated under the Raisi government. Amidst Iran’s struggle with inflation, poverty, escalating prices, and infrastructure decay, the regime’s Supreme Leader exhibits persistence in upholding his contentious policies, relying primarily on a decades-old strategy: quelling dissent.
