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Sanctions work: Iran's economy is expected to shrink by 10% this year, oil profits expected to plummet | Israel today

2019-12-10T23:34:56.451Z


economy


The Financial Times from Tehran reports that state profits from oil sales will fall by 70% • Government will try to cover income gaps following heavy taxation, which could lead to continued and even increased protests in the country • Following the economic crisis - Iran's support for terrorist organizations is declining

  • Will they get worse in the wake of the sanctions? Demonstrations in Iran // Photo: Islands. Nose. times

The Iranian economy is expected to shrink by about 10% by the end of the year, according to the Financial Times. In addition, according to a newspaper report in Tehran, the Ayatollah regime estimates that state profits from oil sales will fall by 70% in the coming fiscal year, beginning in March 2020. This is about half a million barrels of oil per day, compared with 2.8 million before the sanctions took effect last May. - ie a drop of more than 80%.

The Iranian regime plans to cover the losses by reducing the population's tax burden by 13% - a move that could lead to a complete collapse of the economy. In addition, Iranians plan to sell government bonds worth $ 27 billion, according to the official exchange rate of the Iranian real and about $ 10 billion, respectively, in the black market.

The Iranian budget is expected to amount to less than $ 40 billion, based on the unofficial value actually traded by the Real. These measures of the Iranian economy could jeopardize the Ayatollah rule, which has already faced the country's biggest riots in a decade, if not the biggest since the 1979 Islamic Revolution. In the riots, which erupted as a result of rising oil prices by 50%, hundreds of thousands of people participated and, according to international sources, the number of fatalities is 208.

Demonstrations in Iran following the economic crisis

Poor families and terrorist organizations are appointed

Despite fierce protests, the regime in Iran is determined not only to cut energy subsidies but also to gas, electricity, regular fuel and fuel for petrochemical plants. At the same time, the regime plans to grant subsistence allowances to poor families in an attempt to alleviate their situation, raise public sector salaries by 15% and the health budget should jump by more than 80%.

"We are aware that people are struggling under the burden of sanctions and their purchasing power has dropped," President Hassan Rouhani recently said in a speech to Parliament. "We are facing huge difficulties in importing and exporting, carrying out transactions and exporting oil, but are trying to improve the situation."

In Tehran, Vladimir Putin hopes that the Russian president will approve a $ 5 billion loan to Iran. "We hope to receive investment from Russia of $ 5 billion next year, and expect to receive assistance from other countries as well," Rouhani said in his address, referring mainly to the EU and China.

Despite the difficult economic situation, the Wall Street Journal recently announced that Iranians continue to fund terrorist organizations around the world, albeit to a lesser extent than before.

Source: israelhayom

All news articles on 2019-12-10

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