Home News Iran Grapples with Economic Turmoil and Rising Poverty Under Raisi’s Rule

Iran Grapples with Economic Turmoil and Rising Poverty Under Raisi’s Rule

In a striking departure from its usual rhetoric of economic stability, Iranian state media and government officials are openly acknowledging the nation's worsening economic crisis, sounding alarms over its potential repercussions for the ruling regime.
In a striking departure from its usual rhetoric of economic stability, Iranian state media and government officials are openly acknowledging the nation's worsening economic crisis, sounding alarms over its potential repercussions for the ruling regime.

This candidness contrasts sharply with the narrative typically promoted under President Ebrahim Raisi’s administration.

State-affiliated expert Ahmad Hatami Yazd has voiced concerns about the “wave of severe inflation” impacting the country, leading to a sharp increase in poverty and deepening societal divisions between the very wealthy and the impoverished. In an interview with Khabar Online, Yazd revealed the alarming depreciation of the national currency, which has diminished by 10,000 times over the past four decades, significantly eroding the purchasing power of Iranians.

Further emphasizing the severity of the situation, labor activist Yadollah Faraji pointed out the grim reality for retirees, many of whom struggle to survive on pensions that barely cover half a month’s expenses due to the poverty line soaring above their means.

 

 

Economist Farshad Momeni, citing recent statistics, disclosed that a staggering 89% of the impoverished in Iran are either employed or were previously employed, indicating a critical issue with wage inadequacy. Momeni also criticized President Raisi’s outdated rhetoric that fails to address the current economic conditions, highlighting the dire need for actionable solutions rather than political posturing.

In a recent edition, the state-run website Asr-e Iran projected no relief from soaring inflation or currency devaluation in the upcoming fiscal year. It warned of an ongoing “dangerous inflationary spiral” exacerbated by external factors like currency fluctuations and regional conflicts, potentially leading to hyperinflation.

Adding to the economic woes, the Tehran Province Water and Wastewater Company has urged residents to prepare for potential water rationing by storing at least 75 liters of water per person. This precautionary measure stems from an aging water network and reduced rainfall, exacerbating the hardships faced by Tehran’s populace.

 

 

The housing sector also remains in crisis, with rental prices surging by 42% this year alone, as reported by state media. The “Donya-e-Eqtesad” newspaper further noted that monthly inflation continues to climb, with housing rental costs increasing by 1.7% compared to the end of the previous year.

These candid admissions from within the Iranian regime mark a notable shift from the often-rosy economic narratives previously showcased. As the nation contends with escalating prices, poverty, and infrastructural decay, the regime’s Supreme Leader continues to rely on longstanding strategies of suppressing dissent, a tactic that may no longer suffice in the face of such overwhelming economic challenges.

 


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