Iran Economy News Iran's Economy Is on the Verge of Free Fall

Iran’s Economy Is on the Verge of Free Fall


In Iran, basic goods have now soared above levels that we would consider normal for luxuries, which means that the vast majority of people are unable to make ends meet.

The price of items like poultry and oranges have tripled, while tomatoes and milk are four times more expensive. Red meat meanwhile, well that’s something that 70 percent of people just can’t put on the table, according to the semi-official ILNA news agency, with many people relegated to purchasing bones.

As food prices rose, so did poverty, with the poverty line now set at 100 million rials ($385) a month and minimum wage under 20 million rials ($77). Incomes have dropped by one-third in three years, while the dollar exchange rate increased eightfold, gold coin price 18 times, property seven times, and cars ten times.

Iran’s Economy Suffers from State-Backed Mafia, Not Sanctions

“The 26.2 percent increase of poultry prices, 13 percent increase of the price of meat, and 9.2 percent increase of rice prices indicate what other than authorities’ economic mismanagement in stabilizing the country and resolving people’s economic issues?” Siyasat-e Rouz daily wrote Saturday.

The government tries to blame this on international sanctions, imposed in the past few years because of the government’s malign nuclear program, but the truth is that systematic corruption and mismanagement in the ruling system are the true cause.

The authorities’ own Statistics Centre reports that the marked decline in sales of meat, dairy, rice, and oil to the middle classes began a decade ago before even the Obama-era sanctions kicked in, and many inside the establishment are openly questioning this version of events.

High Prices for Essential Exacerbate Social Problems in Iran

Said Leilaz, an official close to the faction of President Hassan Rouhani, called the sanctions myth a “despicable lie”. While economist Ehsan Soltani, who is also close to Rouhani, advised that $60 to $80 billion has left the country in two years without a trace, which he put down to “corruption.”

Meanwhile, Sabzineh website wrote Monday that Iran’s misery index has “increased by nearly 40 percent in 8 years”, largely as a result of the dire economy.

“In other words, the regime officials’ corruption, embezzlement, and plundering of national wealth to fund terrorism abroad and oppression inside Iran have expedited Iran’s economic downfall. The regime’s mismanagement and corruption have resulted in a massive inflation rate and liquidity,” the Iranian opposition National Council of Resistance of Iran (NCRI) wrote.

The people realized this, which is why they participated in the November 2019 uprising and called for regime change. They know the government cannot and will not solve their problems.

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