Economic crisis in Iran: Raisi promises to reduce galloping inflation

Iranian President Ebrahim Raisi addresses lawmakers defending his budget bill for next year in parliament in Tehran, Sunday, January 22, 2023. AP - Vahid Salemi

Text by: RFI Follow

2 mins

Four months after the beginning of the protest movement, while the economic situation has continued to deteriorate, Iranian President Ebrahim Raisi has tried to reassure the population by presenting a draft budget for the year starting on March 21 , with a focus on fighting inflation and defending the Iranian currency.

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With our correspondent in Tehran

,

"

" are the priorities of the budget, the Iranian president told the deputies.

The Iranian economy, affected by US

, is plunged into a serious crisis with official inflation exceeding 46% while that of everyday consumer products reaches 70%.

The protests of recent months have further aggravated the situation.

Since September, the Iranian currency has lost more than 30% of its value, which has a direct effect on all products.

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Money changer in the streets of the business district of Tehran, January 2012. REUTERS / Raheb Homavandi

The pessimistic economists

The new sanctions imposed against Iran by the United States and

since the start of the protest movement have further aggravated the situation.

But the president wanted to be reassuring, assuring that the Iranian economy had reached a growth of 4% after several years of negative figures.

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According to official figures, Iran managed to increase its oil exports to a level of 1.4 barrels of oil per day.

However, economists predict even more difficult months with the continuation of inflation and the continued decline in the value of the currency against the dollar.

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• Iran

• Ebrahim Raisi

• Economic crisis