President-elect Ebrahim Raisi — a fanaticsr Widely hostile to the West – has vowed to improve Iran’s economy and raise living standards for families by focusing on bolstering the country’s domestic resources, trade ties with regional allies and industrial production.
He has said he will uphold the nuclear deal that world powers are rushing to defend during the remaining weeks in office of moderate President Hassan Rouhani, but has also said he does not believe it will be of central concern to the country. Must be subject.
With or without improved ties with the world, Raisi faces major challenges as tough US sanctions remain in place and Iran’s banks isolated from the global economy.
Below are three charts that show the scale of Iran’s difficulties and the major economic problems Raisi is facing:
Iran’s economy contracted sharply after former US President Donald Trump reimposed sanctions on the country and pulled Washington out of the nuclear deal in May 2018, leading to a major fall in the rial.
President Hassan Rouhani’s government tried to control the money markets by using a fixed exchange rate, but the policy backfired and eroded the route, leaving millions of ordinary households struggling to make ends meet. Spending power has declined dramatically as rising inflation and a very weak currency hit incomes.
US Effectively embankmentEd. of the sale of Iranian crude oil to other countries by threatening sanctions on buying energy from the Islamic Republic.
Decline in oil revenue and productivity and lack of foreign exchange hurt economic growth in the region. Before Trump’s sanctions, The International Monetary Fund had expected Iran’s GDP to grow by about 4% in 2019, but instead shrank by more than 6%.
The European Union, which is leading talks in Vienna to revive the nuclear deal, was one of Iran’s biggest trading partners before US sanctions were reimposed. Rouhani’s government was keen to resume its position as the country’s top foreign trade partner after the nuclear deal came into force in 2016. But those plans came to a halt after sanctions were reinstated, and Iran’s imports from the EU fell by 80%. By the last quarter of 2020.
In his campaign, Raisi emphasized building trade ties and export markets with regional allies and did not address the future possibility that Iran could reinstate agreements with foreign companies that reimposed sanctions in 2018. After leaving the Islamic Republic was left. fanaticsrs often advocates stronger ties with China and Russia rather than Europe.