Chronic inflation damages economic growth prospects

Financial Tribune – Chronic inflation, which stems from economic imbalances, ruins economic growth, Masoud Nili, a prominent economist and professor of economics at Sharif University of Technology, says.

“Iran’s economy has not fared well in terms of long-run growth, which is a sustained rise in the quantity of goods and services it produces. Chronic inflation is one of the root causes of the Iranian economy’s poor performance,” Nili said in an interview with Donya-e-Eqtesad media group’s video-streaming service EcoIran.

Iran’s gross domestic product shrank by 4.9% in the fiscal 2018-19 compared to the year before, the Statistical Center of Iran’s latest report shows.

Economic growth, excluding oil production, stood at -2.4%. Production in “industry” and “agriculture” contracted by 9.6% and 1.5% respectively. The “services” group posted a meager 0.02% growth.

Iran’s economy in the fiscal 2014-15 registered a 3% growth after two years of recession when the economy contracted 5.8% and 1.9% back to back, according to the Central Bank of Iran.