On March 29, Haj Babaie, a member of the regime’s Majlish, acknowledged that there is a fatal recessional inflation occurring within the country and said, “We are facing a fatal recessional inflation. Gentlemen! We have only created jobs for other countries! 28 billion of the country’s income has been swallowed up by official companies.”
The 2015 nuclear agreement was meant to release some sanctions related to Iran’s nuclear program, in hopes of invigorating the Iranian economy. However, companies have been hesitant to take advantage of this business opportunity, since the U.S. still has a large number of sanctions in place.
Boeing has a contract with Iran Air, but new sanctions could end up putting the deal on hold, as Iran Air is partially held by the Islamic Revolutionary Guard Corps (IRGC), which is sanctioned in the Senate version of the latest Iranian sanction legislation in the U.S. Congress.
Yet, the large amount of oil and gas within Iran, along with the second largest population in the Middle East, mean it is an untapped area for companies looking to expand their markets.
This Majlis member mentioned the continuous growth of unemployment in the New Iranian year and said, “Statistics show that, as we adopted in our sixth program and the government confirmed, at the beginning of the year the unemployment rate is 12.6 percent. This shows a continuous growth of unemployment. Today, everyone knows that we are facing a fatal recessional inflation.”
Unemployment and inflation continue to plague Iran, despite the large number of highly educated young people in its population. The economic issues are also impacted by corruption and the fact that the IRGC is a financial powerhouse in the country, owning a portion of many state-run companies.
Babaie noted that Iran’s current economy and the current economic actions cannot answer the needs of the Iranian people. “On one hand, we are sabotaging our national economy and our national production with the influence of the rooted corruption and smugglers in our political and economic affairs that has paralyzed our national production and has turned our people and our producers dependent to foreign products,” Babaie said.
Using the high price of gas as an example, he said, “There is no economic calamity worse than hearing that imported gas is cheaper than our national gas production, so we have to import it.”