Iranian listed companies have managed to grow profits despite major cost pressures stemming from sanctions. This may be because firms are exercising extraordinary pricing power.
asdasdasdasdasdasdasdasdasdasd
asdasdasdasdasdasdasdasdasdasd
All tagged inflation
Iranian listed companies have managed to grow profits despite major cost pressures stemming from sanctions. This may be because firms are exercising extraordinary pricing power.
An open letter co-signed by 61 Iranian economists addresses the government and the Iranian people about the country’s economic challenges.
A new round of protests has begun in Iran. People are taking to the streets following a controversial subsidy cut perceived as an increase in the price of bread.
Comparing the economies of Russia and Iran, it is reasonable to assume that Russia will endure its financial war.
Iran’s giant automakers, Iran Khodro and Saipa, are in a tug of war with the Rouhani administration over demands to lift price controls. The state-owned firms are seeking to increase prices by 40 percent.
The gasoline price hike of November 15 triggered widespread violent protests in Iranian cities. Three days later the government announced that it would increase the amount of cash transfers to compensate for the price increase and soften its blow. But do the new transfers adequately compensate for the gasoline price increase?
Earlier this month, the Statistical Center of Iran reported a record high level of employed Iranians, with nearly 25 million people in work. Meanwhile, the IMF has revised down its 2019 projection for Iran’s economic growth to -9.5 percent. What explains the divergent narratives in Iran’s employment data and growth data?
◢ New data indicate that, while Donald Trump’s policy of “maximum pressure” has reduced Iranian oil exports to near zero and seriously hurt Iran’s economy, it has not caused anything resembling economic collapse. Furthermore, these data suggest that the economy is not in a steep decline, one that would anytime soon force Iran to capitulate.
◢ During a meeting with the Islamic Republic's political elite, Supreme Leader Ayatollah Ali Khamenei reiterated calls for a “resistance economy,” but also placed new emphasis on the “increasing the ease of doing business.” The specificity of some of Khamenei’s advice and observations about Iran’s economy suggests a greater appreciation for the practical importance of economic reforms that go beyond well-worn political slogans.
◢ Working class Iranians could look forward to a hearty meal of meat stew or kabob at least once a week. But with meat prices soaring to all-time highs, Iranians are having to cut back on their consumption in yet another example of falling living standards as Iran’s economy falters under the pressure of sanctions and mismanagement.
◢ An examination of the nature of Europe-Iran trade and the impact of this trade on Iran’s currency markets, suggests that the SPV could have a significant and stabilizing impact on Iran’s economy by helping to fight runaway inflation, the foremost economic challenge facing Iran’s leadership—even if the mechanism is initially limited to humanitarian trade.
◢ There is a growing sense that Iran has squandered its chance to join the ranks of the BRICs—Brazil, Russia, India, and China—which count as the great emerging markets of the world. As sanctions return, as the rial sheds value, and as protests become routine, Iran is increasingly portrayed as an economic basket case where state collapse is just around the corner. But comparing Iran’s macroeconomic performance with Brazil, another country that has contended with widespread protests and economic angst for over three years, paints a very different picture.
◢ There is growing consensus that the core constituency of the recent wave of protests in Iran is working class youth who feel "forgotten" in the country's economic plan.
◢ The expected post-sanctions windfall has yet to materialize and the Rouhani administration will need to decide whether it will compromise on its austerity-type budgets in order to offer some near-term economic relief.
◢ In most countries, central bankers wield immense influence over the economy through their monetary policy.
◢ The Central Bank of Iran has struggled to secure the power and independence of its foreign equivalents, hindering economic planning and growth.
