Iran’s new economic stimulus package will curb inflation below 25 percent
Baku, Azerbaijan, Aug.10
By Fatih Karimov - Trend:
Iran's new economic stimulus package will curb the inflation rate below 25 percent.
Iran's central bank governor Valiollah Seif said the economic policy package will reduce the inflation rate growth, Iran's Tasnim news agency reported on August 10.
Currently, the inflation rate is about 25 percent, he said, adding that the inflation rate is projected to fall below 15 percent next year.
On July 26, the administration of President Hassan Rouhani released its new economic policy package for the country to emerge from stagflation.
The administration released a new short-term economic policy to push the country out of the current state of stagflation.
This report identifies financial shortages, slump in domestic demand, and fall in investments, besides the unjust sanctions imposed by the West, as the main obstacles faced by the country.
The new economic policy is centered on resolving financial shortages and boosting domestic demand, given the unjust set of sanctions by the western countries persists over the next year.
Mohammad-Ali Najafi, advisor to Iranian president Hassan Rouhani, said on August 9 that Iran's inflation rate is expected to fall to 15 percent in Iranian year 1395 (March 2016-March 2017).
The country's economic growth rate is expected to hit 2 percent and 4 percent in the next two years, and the inflation rate is expected to fall below 15 percent, he added.
The current Iranian year started on March 21.
The national economy was contracted over the past two years, he added.
According to the International Monetary Fund, 8 countries had the inflation rate of over 10 percent. Iran ranked second after Venezuela in the ranking, he said.
President Hassan Rouhani said on August 8 that the country's inflation rate has dropped below 25 percent.
He said he had promised that the inflation rate would fall to 25 percent in the current year, but the current inflation rate is already below 25 percent.
He added that he will announce the new inflation rate next week.
He also said that the economy will not contract in the current year.
When Rouhani took office in August last year, the Central Bank of Iran (CBI) had put the inflation rate at 45 percent.