An Iranian boy pushes a cart filled with recyclable materials in south of Tehran on March 12, 2008. (AFP)

June 17, 2021

Iran under the mullahs is the eight-worst in the world for misery, according to Johns Hopkins economics professor Steve Hanke in a recent interview with the country’s state-run ISNA news agency. The main reason, he said, for Iran’s position was high inflation and currency depreciation.

The only countries in a worse position are Argentina, Lebanon, Sudan, Syria, Turkey, Venezuela, and Zimbabwe. However, recent statements by presidential candidates indicate that Iran may surpass all of these countries soon to reach the top of the misery index, as they expose further corruption in order to try and smear their opponents.

One of the worst issues in the increase in liquidity, which is reducing the purchasing power of everyday Iranians and threatening their ability to afford food and shelter. Liquidity growth is one of the most important aspects in worsening inflation and now Iran is at a critical stage. The Mehr News Agency wrote on June 7 that liquidity has risen from 16 trillion rials to 35 trillion rials in just three years; which is over 50% and a world record. Meanwhile, the economic commission’s deputy chair said that the point-to-point inflation record was broken in March and unpublished statistics report that inflation is at over 50%

Worryingly, economic experts warn that this is when an economy enters the “hyperinflation” stage, with Mohammadreza Abdollahi saying that triple-digit inflation would “not be unlikely” if the ongoing negotiations with the West to have economic sanctions lifted do not work.

The Ministry of Industry, Mine and Trade wrote on June 9: “Some experts’ analysis shows that the situation could be even more difficult. These forecasts emphasize that the Iranian economy is now ready to reach three-digit inflation; A rate that was experienced only during the years of occupation of the country in World War II.”

Meanwhile, the Expediency Discernment Council’s Macroeconomic Committee produced a report that indicated the disaster may be worse than feared. It advised that Iran’s average economic growth has consistently decreased from 1997 until 2017, dropping from 3.5% to 2.17%. The exchange rate also increased 5.7 times (or 466%) between 2017-2020, which has led to purchasing power decreasing, especially as unemployment has risen to 44.5%.

The report read: “Investment growth is worse than economic growth, and in most years, it has been negative, which will destroy the country’s production capacity for many years and will seriously damage employment in the country. The inflation rate in Iran has had the worst performance, while the problem of inflation is now solved in most countries. The change in the exchange rate has also shown the deterioration of the national currency.”

The fact is that the people of Iran know that the only way to solve this issue is for regime overthrow.

INU

About Track Persia

Track PersiaTrack Persia is a Platform run by dedicated analysts who spend much of their time researching the Middle East, in due process we fall upon many indications of growing expansionary ambitions on the part of Iran in the MENA region and the wider Islamic world. These ambitions commonly increase tensions and undermine stability.