Iran finds itself challenged in attaining its economic objectives independently.
Iran's battling with high inflation and unemployment rates, surpassing ten percent. To combat this, a boost in economic growth is necessary, but sanctions are posing a challenge. The funding for this growth spurt is anticipated to originate from external sources.
According to President Massud Peseschkian, Iran requires roughly $100 billion in foreign investments to attain an annual economic growth rate of eight percent. In his inaugural live interview on state television post-July election as president, Peseschkian mentioned that Iran needs a total of up to $250 billion to meet its objectives, with more than half of this budget sourced domestically. Experts speculate that an eight percent increase in GDP would lower the current high inflation and unemployment rates, which are around four percent.
Numerous enterprises and individuals in Iran, including the central bank, government officials, drone manufacturers, and currency exchangers, are being targeted by international sanctions. They're being accused of supporting the Iranian Revolutionary Guard Corps and foreign militant groups, such as Hamas in Gaza, Hezbollah in Lebanon, and the Houthis in Yemen.
In his interview, Peseschkian criticized the sanctions and stated that his government aims to diminish the current inflation rate, which exceeds 40 percent yearly. He didn't disclose the specific methods to accomplish this.
President Peseschkian confirmed that his first foreign trip will take him to Iraq, followed by a visit to New York for the UN General Assembly on September 22 and 23. In New York, he intends to encourage Iranian expatriates to invest in their homeland. There are around 1.5 million Iranians residing in the United States, out of the over eight million Iranian expatriates globally.
Peseschkian assumed office last month and is recognized as reform-oriented. His predecessor, Ebrahim Raisi, passed away in a helicopter crash in May.
The current sanctions are impeding Iran's ability to secure the necessary funding from external sources to boost its economy, as stated by President Peseschkian. With an eight percent annual economic growth rate, as aimed by the Iranian government, the economy could potentially decrease its high inflation and unemployment rates.
