Petrodollars blamed for stagflation

TEHRAN August 12 (Shana)–Minister of Economy Ali Tayyebnia has said that economic dependence on oil windfalls in recent years has exacerbated stagflation in Iran.

 “In the past years, we could reach high economic growth, but we relied on oil revenues and this issue heightened inflation and stagnation in the country,” the minister said.

Tayyebnia said monocultural economic structure, low share of productivity and the government’s mismanagement in recent years are behind Iran’s economic recession.

“Iran’s economy is seriously ill and the structure of sanctions has added to its problems. Therefore, we have to fix the structure of economy after sanctions have been lifted,” he said.

Tayyebnia said Iran’s gross domestic product (GDP) has fell in recent years, inflicting a strain on banks.

By SHANA

 

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