Iran Economy NewsWhy the Iranian Economy Is in Tatters

Why the Iranian Economy Is in Tatters

-

Iranian Foreign Affairs Commentator and research analyst Cyrus Yaqubi have written an op-ed about the Iranian economy, where he spoke about how the crisis has been made worse under each subsequent president and advised that the problems have not been caused by sanctions but rather by the mullahs’ actions.

Yaqubi advises that during the 40 years of the regime, the country has earned some $ 1,377 billion from selling oil – $700 billion during the eight-year presidency of Ahmadinejad alone – but yet the economy is still ruined and the country is nearly bankrupt.

How? Well, Ahmadinejad spent much of the country’s income on the Revolutionary Guards, terrorism, domestic repression, and missile programs, which meant that the people never saw that money.

This only got worse during Rouhani’s subsequent eight-year presidency, with Iranians only getting more money stolen from them, as proven by the revelations that have come out over the last few years. One of these involved Sepah Bank CEO Ali Rastegar Sorkheh and Rouhani’s brother Hossein Fereydoun embezzling 3,700 billion tomans, but because of Rouhani’s involvement, he has tried to ignore or justify the corruption cases, even blaming the issues of sanctions.

Yaqubi wrote: “According to a regime official, at least 80% of the country’s problems are due to mismanagement and corruption, which have nothing to do with the sanctions.  Experts say Iran’s devastating economy has never been worse in the past 42 years. Not even during the eight-year Iran-Iraq war has the situation in Iran been so critical.”

He then said that new Iranian president Ebrahim Raisi doesn’t know “anything about management or the economy”, so the problems will only get worse because of this year’s budget deficit, which will lead to banknote printing, liquidity growth, and inflation. With inflation now at 80% for some essential items and 60% of the country in poverty, this seems to be a dangerous situation indeed.

Yaqubi wrote: “This situation cannot last long, and the impoverished Iranians are facing poverty, unemployment, the COVID-19 virus, droughts, unannounced and extended blackouts, and many other economic problems. The Iranians are suppressed through the regime’s violent crackdowns. However, the Iranian people cannot be suppressed forever, and the collapse of the corrupt regime is close. Many analysts, even regime insiders, describe the current social environment as a powder keg waiting to explode.”

Thus, he advised, that many experts are already predicting that Raisi will not be in power for the entire four-year first term.

Latest news

Corruption Allegations Surround Tehran’s Friday Prayer Leader Amid Factional Struggles

Recent reports from Iran suggest that Kazem Sadighi, Tehran's Friday Prayer Imam, has allegedly seized a property valued at...

Housing Accounts for Half of Spending by Tehran Households

Official statistics on income and expenditures of households in Tehran show that urban households in the capital of Iran...

US, UK Ask UN To Prevent Iran from Sending Missiles to Houthis

Representatives of the United States and Britain at the United Nations Security Council meeting called for UN maritime inspection...

Medicine Scarce in Iranian Pharmacies, Abundant in Free Market

The distribution of medicine in Iran faces numerous challenges. Various governments promised to solve these issues at the beginning...

10% of Iran’s Gas Lost in Production and Transmission

The International Energy Agency, states in its annual report that Iran ranks third globally in methane emmissions. According to the...

Iran’s Oil Production Declines, OPEC Reports

The Organization of the Petroleum Exporting Countries (OPEC) has reported a decrease in Iran's oil production for the second...

Must read

Ahmadinejad says Iran to pursue nuke project to the end

Iran Focus: Tehran, Iran, Feb. 03 – Iran’s hard-line...

Iran elections candidates: Mostafa Moin

Iran Focus: Moin served as chancellor of Shiraz University...

You might also likeRELATED
Recommended to you