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Iran's Economy Is Stagnating Even Before New U.S. Sanctions Hit

(Washington Institute for Near East Policy) Patrick Clawson - Since spring, Iran's economy has experienced an unexpected recession, exacerbated by government policy. The Statistical Center of Iran showed that inflation in September was 5.4%, which translates into an 88% annual rate. By some accounts, a third of men and half of women under thirty with college degrees are unemployed. The price of gasoline in rials has not been adjusted since May 2015 even though the rial has lost 75% of its value. This means gas has become incredibly cheap - 24 cents per liter, compared to $1.20 in Turkey. The Central Bank has been flooding the economy with liquidity, allowing banks to lend money to failing companies and the government so that they can pay workers and therefore forestall protests. The IRGC's penchant for building dams - 600 in the last 30 years, compared to 14 in the shah's last 20 years - has been a leading cause of environmental problems. The writer is director of research at the Washington Institute.
2018-11-02 00:00:00
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