Real Per Capita Income Declined by One-Third

IRAN NEWS ECONOMIC DESK

TEHRAN – The caretaker of Majlis Research Center (IPRC) says all the reports and studies of the center which have been read in the open sessions of Majlis have been based on document, adding that the real per capita income has declined by one-third in the past nine years.

Speaking in the open session of Majlis, Mohammad Qasemi defended the report of the center on the current economic condition of the country, adding that all reports have been authentic and based on documents.

He said that as the Supreme Leader has said, economy is a decisive issue in the country which has faced managerial and structural weaknesses since the victory of the Islamic Revolution. He reiterated that all reports of the center are based on the logical economic patterns.

Qasemi noted that Iran’s economy in the past years has faced several structural challenges. He said in the country’s macro economy, the economy has always faced the downtrend growth rate, several fluctuations in the economic growth and the growth in dependence on oil, adding that while the economic growth target of the country has been set on 8 percent for the fifth and sixth development plans, the average economic growth of the country has been close to zero between 2012 and 2019 and during these years, country’s economic growth has been between minus 8.3 to plus 14 percent.

He said economic growth needs enough investment, adding that accumulation of capitals in oil, gas, industry, mines, construction and communications have been negative since 2012, adding that at the same time, the annual growth of these sectors was 3.5 percent on average in the past seven years before 2012.

On the inflation, he said the long-term average inflation rate of the national economy has been 20 percent, adding that most countries have resolved the issue of inflation while in Iran it is still a major problem and it actually has cut the real per capita income by one-thirds since 2011.

He reiterated that the government can be the first victim of the inflation and the rise in the government’s current expenditures can lead to the budget deficit.

Qasemi added that in several international economic indexes, the country’s condition has worsened, adding that the business environment in the country is also not satisfactory.

He reiterated that those mentioned problems are not limited to a certain government and all governments in the country have had their own weaknesses.

Qasemi noted that the current government will face at least with 185,000b tomans of budget deficit by the year end.

He added that as long as the banking system of the country is not reformed, problems cannot be solved by the government