Economy minister targets non-inflationary growth
Iran’s Economy Minister Abdolnaser Hemmati said that to get out of the 3% growth trap of the past three decades, the country must target non-inflationary growth, not its inflationary counterpart.
Addressing a conference on financing the production sector, he noted that during the past three decades, the average growth rate of Iran has not been more than 3%.
“Based on our historical experience,” he added, “If we are just to wait for economic growth to pick up pace, it may not happen, so we should not rely on it at all.”
“The law approved by the Parliament will be the main basis for financing, and we will execute it seriously. We will put this law on the agenda seriously, and I hope we will take good measures in this field within the next one or two years.”
Hemmati stressed, “We can easily solve a set of complex problems; the law on financing production and infrastructure was a good law that was approved last year. The solutions provided by this law can make some movement in our economic growth.”
The minister of economy emphasized that the uncertainty prevailing in the economic environment also affects production.
Emphasizing the importance of “physical and institutional capital,” he stated that the aforementioned law considers all these issues and reduces the pressure on the banking system.
“Instead of allowing banks to over-withdraw, we must stop it and reduce the legal deposit to reduce pressure on banks. We have reached good agreements with the president to provide facilities for production sectors.”