The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran) report that the economy in Iran has been on the decline for many years. The regime has destroyed the economy through policies of corruption and mismanagement that have lasted decades.
People’s purchasing power is extremely low
More and more people are falling into absolute poverty and the people’s purchasing power is extremely low.
Given the dire situation of the economy in the country, many have been surprised to hear Iran’s Supreme Leader Ali Khamenei say last month that Iran ranks 18th among the top economies in the world. He said that this has been verified by “world-renowned economists” but he was sparse with the details.
Iran is under severe economic restrictions
Iran is under severe economic restrictions because of sanctions and is not even permitted to sell its own oil. There is sub-zero economic growth, levels of inflation at 50 percent, decades worth of negative investment, horrifying levels of unemployment, and so on. So how does the Supreme Leader expect anyone to believe that Iran has one of the top 20 economies in the world?
Mid-2019, the World Bank said that Iran ranks 103rd with regards to per capita gross national income. With regards to purchasing parity, it ranked 93rd at that time.
The economic situation is worse than ever
If we look at the reality of the situation in Iran we will see that the economic situation is worse than ever and that there are very few positive developments. The absolute poverty category is expanding all the time. More and more people are finding it tough to make ends meet at the end of the month, with even more people having to give up on the most basic of commodities. Normal food items are becoming luxury items out of the reach of more and more people.
The people’s purchasing power continues to decline and people are having to queue for regular items, plus pay over the odds for them. Unemployment is also on the increase, with many more people losing their jobs over the past year.
The Supreme Leader’s claim is baseless
It seems that the Supreme Leader’s claim is based on a report taken from the International Monetary Fund’s preliminary report for 2016 in 2017. This report points to Iran’s GDP in terms of purchasing power parity ranking 18th position. But it must be highlighted that the IMF does not actually confirm this ranking.
In any case, these statistics are based on less than the real exchange rate of 4200 Tomans per US dollar. This is not the exchange rate used by the open market. If that was used, these rankings would be very different.
The people of Iran want to see the regime collapse
And much more realistic. If the exchange rate declared by Iran’s Central Bank had been used, Iran’s position would have drastically changed.
The exchange rate of 25,000 Tomans per US dollar would have seen Iran’s IMF ranking with relation to GDP value fall to approximately 95.5 billion dollars. This would place it beside Kenya in the 64th position.
The people of Iran want to see the regime collapse. They understand that the regime is directly responsible for their economic hardships and they want a chance to recover.