From the Liveblog of
Monday, December 3, 2018
Top official: Iran faces ‘chronic challenges’ beyond US sanctions
Iran is facing “chronic challenges” that existed long before US sanctions were reimposed, the influential parliament speaker Ali Larijani says.
“External factors do affect our economy, but there are problems persisting from before,” Larijani says at a press conference. He lists a number of challenges, including “big, costly government,” high interest rates that “disrupt production,” cash-strapped pension funds and a water crisis.
Parliament’s research center has “repeatedly warned” of these challenges, Larijani says, but the government has yet to respond on key issues.
The US decision in May to withdraw from the 2015 nuclear deal and reimpose sanctions on Iran has added another layer of difficulty.
The International Monetary Fund says the Iranian economy will contract by 1.5 percent in 2018 and 3.6% is 2019, largely due to reduced oil sales caused by the renewed sanctions.
Larijani is an influential insider who was previously seen as deeply conservative but has lately forged a close working relationship with the faction led by President Hassan Rouhani.
— AFP
The Times of Israel Community.