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Iranian official reveals country’s economic figures for 5 years

Business Materials 19 June 2019 10:58 (UTC +04:00)

Baku, Azerbaijan, June 19

By Elnur Baghishov - Trend:

Investment growth in Iran over the five Iranian years (from March 21, 2013 until March 21, 2019) was negative in average, reaching 3.8 percent, according to Iran’s official statistics, said Masoud Khansari, chairman of the Tehran Chamber of Commerce, Industries, Mines and Agriculture, Trend reports with reference to Mehr news agency.

He noted that consumption in the reporting period has increased and in average reached -2.2 percent.

He added that inflation amounted to 9.26 percent, economic growth amounted to -4.9 percent, exports -6 percent and imports -21.7 percent. Considering that the main part of Iranian imports is raw materials and industrial products, these figures cause concern.

“According to the Plan and Budget Organization of Iran, subsidies worth 8 quadrillion rials (about $190 billion) are paid,” he said. “However, only 2 quadrillion rials (about $47.6 billion) of this volume of subsidies are paid from oil revenues.”

He noted that Iran’s economic situation may be improved by adjusting the subsidies payment format to citizens, paying subsidies in cash to economically vulnerable strata of the population.

“Last Iranian year [March 21, 2018 - March 20, 2019], subsidies worth 5.33 quadrillion rials (about $126 billion) were issued for energy carriers, but this amount was not enough for production,” he added. “Thus, 1.23 quadrillion rials (about $29.2 billion) were subsidized for gasoline, 1.3 quadrillion rials (about $30.9 billion) for diesel fuel and 2.8 quadrillion rials (about $66.6 billion) for liquefied gas.”

Certain opinions are voiced regarding the payment of subsidies to citizens in Iran. Economists and some officials consider it illogical to pay subsidies to those who do not need them, and they want reforms in the format of payments.

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