Masoud Benabiyan, Vice President of the Tabriz Chamber of Commerce, addressed the economic situation of the country at the 127th meeting of the East Azerbaijan Government and Private Sector Dialogue Council, stating that the budget deficit in the year 1403 will reach approximately 3340 tomans.
Impact of the Budget Deficit on the Economy
Benabiyan, referring to the statistics from the Central Bank and the Statistical Center of Iran, stated that since the year 1403, we have witnessed very high inflation in food items, and this trend could lead to a significant increase in the budget deficit. He also added that in the year 1404, the country's liquidity will reach about 15 to 16 thousand tomans, and it is predicted that this figure will increase to 24 to 25 thousand tomans by the end of the year.
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Trends in Currency Rates and Economic Growth
The Vice President of the Tabriz Chamber regarding the currency rate trend said: "The dollar rate was about 98 thousand tomans in Farvardin 1404 and has now reached about 257 thousand tomans." These changes occur while the country's economy faces issues such as production, investment, liquidity, and inflation. Benabiyan also pointed to the negative 10 percent economic growth of the country in the first six months of the year and stated that significant investment is needed to improve this situation.
He emphasized that the economic growth without oil has been about negative 4.56 percent, indicating a severe decrease in investment in the country's economy. Additionally, exports of goods and services have decreased by 35.6 percent compared to last year, and imports have also faced a significant decline.
Challenges of Currency Policies and Energy Imbalance
Benabiyan further referred to the challenges of currency policies, stating: "The multi-rate currency has created a vicious cycle that needs to be corrected." He also mentioned the energy imbalance in East Azerbaijan, saying: "This year, the province will have about 30 percent gas imbalance." This imbalance can severely impact the industries and productions of the province.
The Vice President of the Tabriz Chamber of Commerce, referring to the state of energy subsidies, stated that approximately 136 billion dollars are paid annually in the form of energy subsidies, a large portion of which is related to gas and gasoline. He emphasized that reforming consumption patterns and increasing production capacity should be considered as the main solutions.
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