News / Middle East

Iran's Rouhani says Economic Problems Go Beyond Sanctions

FILE - Iranian President Hassan Rouhani.
FILE - Iranian President Hassan Rouhani.
Reuters
President Hassan Rouhani said Iran's economic problems went beyond sanctions, blaming “unparalleled stagflation” on the profligacy and mismanagement of his predecessor, hardliner Mahmoud Ahmadinejad.

In office from 2005 until August, Ahmadinejad presided over a period of unprecedented revenue growth due to high oil prices but, analysts say, squandered much of it on subsidies that pumped money into the economy and drove up inflation.

He also antagonized the United States and the West by threatening to wipe Israel off “the page of time,” repeated denials of the Holocaust and an uncompromising stance on Iran's disputed nuclear program.

“The stagflation in 1391 was unparalleled,” Rouhani said, referring to the Iranian year that ended in March. During that year, the economy contracted by 6 percent, while inflation rose above 40 percent, he said.

The International Monetary Fund expects Iran's economy will shrink 1.5 percent this year in inflation-adjusted terms, after an estimated 1.9 percent contraction last year which was the biggest since 1988, when Iran's eight-year war with Iraq ended.

Despite receiving 600 billion dollars in oil revenue over the past eight years, Rouhani said the legacy of Ahmadinejad's two terms was around $67 billion of debt. Iran's nominal GDP was $549 billion in 2012 and will shrink to $389 billion in 2013, according to the IMF's October outlook.

“These facts show the conditions we inherited from the previous government and in what conditions we must grapple with the problems,” Rouhani said in a speech late on Tuesday to mark his first 100 days in office.

Rouhani secured a landslide election victory in June promising a policy of “constructive engagement” with the outside world would help ease international sanctions on the Islamic Republic imposed over its nuclear program. Iran denies seeking to develop a nuclear weapons capability.

An interim deal with six world powers clinched in Geneva on Sunday promises to bring some $7 billion-worth of relief from those sanctions, but most of the measures remain in place and Rouhani said it would take time for the economy to improve.

Nouriel Roubini, chairman of Roubini Global Economics and an economics professor at New York University's Stern School of Business said that at this stage, the sanctions lifted would not make a big difference.

“It will still be an economy severely constrained by the fact that most of the most important sanctions are still there and, rightly, the U.S. and great powers are cautious,” he said on the sidelines of a financial conference in Dubai.

“They want to see that Iran is not bluffing.”

Subsidies

U.S. and EU sanctions on Iran's oil, shipping and banking sectors halved Iranian crude exports, helped fuel inflation and unemployment and drive down the value of the rial, which gained about 3 percent following Sunday's deal.

“I don't want to say that all the economic problems are related to the sanctions. A major part of the problem is related to mismanagement,” he said.

Rouhani said reducing inflation was a priority. Inflation had fallen to 36 percent by the end of October and the government aimed to bring it below 25 percent by the end of the following Iranian year - March 2015 in the Western calendar.

The government would also reform the banking system but reforms of Ahmadinejad's expensive subsidy program, under which most Iranian families receive state handouts, would have to wait until a second phase.

Rouhani also said his government aimed to promote agriculture in order to reduce Iran's dependence on imports:   “When you are in a struggle against the world, you have to rely on yourself. You can't confront the world with slogans.”

You May Like

Photogallery US Nurse ‘Cured of Ebola,’ NIH Says

Nina Pham, Texas nurse who treated first Ebola patient in US, received no experimental drugs; WHO expects vaccine surge in 2015 More

Video Islamic State Militants Encroach on Baghdad

Iraqi capital not under ‘imminent threat,’ US military says, amid worries about foothold More

Video Hong Kong Protesters Focus on Holding Volatile Mong Kok

Activists say holding Mong Kok is key to their movement's success, despite confrontations with angry residents and police More

This forum has been closed.
Comment Sorting
Comments
     
by: Change Iran Now from: USA
November 28, 2013 11:51 AM
This regime of Rouhami, Ayatollah Khameni and the mullah's who have supreme power come down hard on the humans right and freedoms of the Iranian people through their vicious and ruthless gang of thugs who call themselves the "Revoltionary Guards" All this talk of Rouhani working for reform is just that talk or propaganda. All this so called reform amounts to is just window dressing at best.

Rouhani is a liar and a fake. These hideous religious dictators of Iran still oppress the Iranian people through the "guards" To such an awful and terrible thing as this the Bibl explains "All the days of the oppresed are wretched..."Proverbs 15:15. Also Proverbs 28:15 may apply to either Rouhani of Aytollah Khamenie which teaches "Like a roaring lion of a charging bear so is a wicked man fuling over a helpless people." In short, this heartless regime of these to two character as well as the mullah"s who are in power in Iran may be summed up in Proverbs 29:2. which reads "When the wicked ruel the people groan." [NIV]


by: Godwin from: Nigeria
November 27, 2013 1:17 PM
So Ahmadinejad wasn't a saint? I thought because of so much meditation his eyes were hidden from the daylight. Now Rouhani is planning to have another tough session with the international community, so he tries to revive agriculture saying, you can't confront the world with slogans, maybe you confront them with moderate hardline obstinacy to continue uranium enrichment.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid